BlackRock says the growing investor hype around artificial intelligence is one of the forces weighing on Bitcoin lately. The asset manager points out that capital rotation into AI tech is impacting the overall crypto market’s price action.

Investors Pivot to AI

According to BlackRock, a big chunk of investors are shifting both their focus and their money into the artificial intelligence sector. That’s leading to less interest in Bitcoin and other digital assets, which is showing up in their prices.

How It’s Hitting the Bitcoin Market

The firm stressed that the move into AI isn’t the only thing dragging on Bitcoin, but it’s become a clear trend. This kind of capital reshuffling between sectors is affecting both crypto liquidity and volatility.

BlackRock’s Take

BlackRock says it’s keeping a close eye on these market shifts and notes that surging interest in AI could keep influencing Bitcoin price action in the near future.