Bitcoin (BTC) just posted its strongest three-day rally since 2023, and two prominent investors now say the move reflects capital finally leaving an overheated artificial intelligence (AI) trade.
There has been much speculation about the role AI investing has played in Bitcoins own market. Now, with this rally, and concerns over an AI bubble, many are noting thw way the capital is rotating.
Big Names Now Confirm the Shift
Analysts have flagged this possible shift for months without confirming it was happening. Research firm K33 warned in June that Bitcoin was losing ground as institutions chased AI returns instead.
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Investor Steve Eisman went further in July, saying he had sold his Google position to cut AI exposure, warning the entire market had become one crowded trade. Then, in late July, veteran macro investor Jordi Visser argued that AIs easy-money phase was ending and that Bitcoin stood to benefit next.
Bill Miller IV, chairman and chief investment officer at Miller Value Partners, is now making the same case with fresh conviction. His comments this week, paired with Vissers, mark two of the clearest signals yet from named, established investors that the rotation out of AI and into Bitcoin is actively underway, not just theorized.
He pointed to two forces behind the reversal. Growing doubt about AI capital expenditure returns is pushing “longdated thinkers” back toward crypto, he said.
At the same time, governments have intervened twice in quick succession. Japan and the US supported the yen in late July, and the US Treasury Department said last week it would double its long-dated bond buybacks, a move that eased pressure on yields and coincided with one of the largest short-liquidation waves crypto markets have seen.
A Rotation Play and a Hedge at Once
Miller argued Bitcoin is not just absorbing AI‘s spillover capital. He framed it as a structural hedge against government debt, noting that this year’s $1.8 trillion US budget deficit alone exceeds Bitcoin‘s entire market capitalization, a comparison meant to illustrate how much new currency is being created against Bitcoin’s fixed supply.
Miller said, arguing investors keep returning to harder, more transparent forms of money across market cycles.
That dual framing, tactical rotation target and long-term hedge, echoes recent reactions to the Treasurys buyback plan from other prominent voices.
Robert Kiyosaki called the move another round of quantitative easing in disguise, while Arthur Hayes argued that suppressed yields are pushing capital out of fixed income and into scarce assets like Bitcoin and gold.
Whether the rotation holds depends on whether AI valuation concerns deepen from here or fade. Millers own view is that once governments start intervening to manage market stress, they rarely stop at one round.