Summary
- Analysts expect AI, Federal Reserve policy and shifting market structure to drive crypto and equity markets through the second half of the year.
- Former Credit Suisse executive Mark Connors says AI is creating a widening divide between companies that benefit from the technology and those at risk of disruption.
- Hyperion Decimus' Chris Sullivan argues bitcoin's four-year cycle remains intact and believes the market is nearing a point where “it's so bearish it's bullish.”
The first half of the year was defined by the AI trade. The second half may be defined by a tougher question: Which companies and assets actually stand to benefit from it？
The contrast between crypto and equities has been one of this year's defining market stories. AI enthusiasm propelled technology stocks to record highs, while bitcoin has tumbled 46% to $58,300 on Tuesday.
Market analysts say investors are entering a period where AI, monetary policy and changing market structure could drive sharp swings across equities and cryptocurrencies, even as the broader economy remains resilient.
Former Credit Suisse global head of portfolio and Risk Dimensions CIO Mark Connors argued AI is no longer lifting the technology sector indiscriminately. Instead, it is separating companies building AI infrastructure from businesses whose products or services could be disrupted by large language models and AI agents.
“The market is being cleaved in two,” he said in an interview with CoinDesk, pointing to Accenture's recent selloff as evidence that investors are reassessing consulting firms as generative AI automates more knowledge work. He also cited weakness in software companies, including Autodesk and Intuit, saying it suggests pressure on traditional software firms could continue.