Recently, I’ve noticed a pretty interesting market phenomenon. The big players on Wall Street seem to be adjusting their strategies—they believe that the days of holding on to big tech stocks for the past few years may really be coming to an end.

Investment officers at top institutions like BlackRock and UBS have recently been expressing similar views—U.S. economic growth might continue through 2026, but the easy-to-profit phase driven by artificial intelligence is already over. Now, investors need to select stocks more precisely, with capital shifting from crowded large-cap tech stocks to sectors such as industry, electrification, and healthcare. Hedge funds are also jumping on this rotation. In particular, some large hedge fund managers have already begun deeper individual stock selection, and are even turning to companies in Europe, Japan, and South Korea that provide AI infrastructure.

This shift is actually quite interesting for Bitcoin. When money disperses away from a single-theme crowded trade, Bitcoin’s positioning changes. In the past, it was often seen as a tool to hedge against the depreciation of the U.S. dollar, but lately gold has been the real main character. However, as the Bitcoin market becomes more mature, things may change.

Bitcoin is now facing a dilemma. Strong economic growth combined with low interest rates usually benefits risk assets, but if inflation stays low and economic activity truly improves, investors may not be so eager to look for alternative assets. At this point, Bitcoin’s value proposition needs to shift from “macro hedging” to “portfolio diversification” and “institutional allocation.” In plain terms, Bitcoin needs to prove that it is a simpler, more liquid alternative than betting on complex artificial intelligence software.

Currently, the BTC price is $73.74K, down 1.05% over the past 24 hours, with a circulating market cap of $1.48 trillion. By comparison, ETH is at $2.32K. What’s interesting is that some companies are already betting on the future of Bitcoin and Ethereum. For example, certain companies that have shifted from mining now hold nearly 5% of the total supply of Ethereum, making them the largest corporate Ethereum holders. Even though they reported quarterly losses as high as $3.8 billion on the books, that mainly comes from fair value accounting—not real losses on actual holdings.

From the perspective of hedge fund managers, the market is becoming harder to grasp. There’s less and less favorable tailwind for simple momentum trading. Bitcoin needs to rely more on its own hedging characteristics, the value of diversification, or liquidity replacement options provided in a fragmented market—these rationales are what matter more. This may mean that in the future, Bitcoin’s performance will depend more on institutional allocation demand rather than macro panic sentiment. If you’re also paying attention to these changes, you can track the real-time price movements of assets like BTC and ETH on Gate to see how this rotation evolves.