Speculative capital is leaving the cryptocurrency market, and AI and robotics are emerging as new destinations for capital. The report notes that last year’s weakness in altcoins indicates that cryptocurrencies are no longer attracting high-risk capital. Bitcoin declined about 12% over the past year, while the global X Robotics and AI ETF rose 13% over the same period.
Reasons for cryptocurrency market weakness include monetary policy uncertainty and regulatory issues. Orelie Barter Naesen, Senior Researcher, said, “The reassessment of Fed rate cuts and political gridlock have dampened investor sentiment.” AI and robotics startups attracted substantial funding, with inflows totaling $13.8 billion in 2025, a new record surpassing the 2021 peak. Meanwhile, the cryptocurrency market faced about a $19 billion collapse in early October after President Donald Trump’s tariff remarks.
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