Macro investor Jordi Visser asserts that the era of effortless gains in artificial intelligence (AI) stocks is concluding, creating potential room for Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and the broader cryptocurrency market to attract significant capital flows in 2026. Speaking with Anthony Pompliano on July 25, Visser argued that while AI remains a transformational theme, the specific window for generating seven- or eightfold returns by simply owning the sector’s most obvious winners has likely closed. This shift implies that future returns will depend on identifying companies with durable infrastructure and real competitive advantages, rather than broad sector exposure.

Visser clarified that his statement "the AI trade’s over" does not mean the technology itself is finished, but rather that the market is entering a more difficult phase of the cycle. He noted that investors should no longer expect the extraordinary gains seen during the early boom phase, although he believes annual returns of around 30% from AI infrastructure investments could still be attractive. This maturation of the AI investment thesis suggests a rotation of liquidity away from high-multiple tech equities toward alternative asset classes that offer different risk-reward profiles.

The potential beneficiary of this rotation appears to be the digital asset market. Visser pointed out that Bitcoin has held up relatively well despite remaining nearly 50% below its record high, and he expects it to eventually move higher. He has been personally adding exposure to Bitcoin during the downturn. However, the key signal for broader market direction may be coming from the relative performance within the crypto ecosystem itself. A crypto ecosystem index created by Visser recently moved above its mid-June highs, even though Bitcoin had not, indicating underlying strength in the wider market.

Visser highlighted that Ethereum has begun outperforming Bitcoin, suggesting the market is starting to look more toward the "revenue side" of the equation. He stated that this development favors Ethereum over Bitcoin, which he views as constructive for the long-term health of the crypto market. This shift indicates a growing investor preference for digital assets with active utility and cash flow generation capabilities, mirroring the traditional equity market’s focus on earnings power after initial hype cycles subside.

What the Numbers Show

The divergence between Bitcoin’s price action and the broader crypto ecosystem index reveals a nuanced market structure. While Bitcoin remains depressed near its 50% drawdown level, the ecosystem index breaking above mid-June highs suggests that capital is rotating into altcoins and utility-focused tokens. This decoupling supports Visser’s thesis that investors are prioritizing revenue-generating protocols (like Ethereum) over pure monetary assets (like Bitcoin) in the current cycle. The outperformance of Ethereum against Bitcoin serves as a leading indicator for this preference, signaling that the market is valuing network activity and fee generation over simple scarcity narratives.

Visser also expects AI and crypto to become increasingly interconnected as autonomous agents begin carrying out financial transactions. He argued that stablecoins could become the primary payment system for AI agents, while blockchain networks provide always-on, programmable infrastructure that operates without relying on conventional banking hours. Notably, Visser argued that stablecoins, not Bitcoin, are more likely to replace parts of the SWIFT payments system. Governments, banks, and technology companies are already positioning themselves around these new financial rails, merging the worlds of past and future at a very fast pace.

Leading cryptocurrencies including Bitcoin, Ethereum, and XRP rose late on Sunday as investors reacted to a pause in military hostilities between the United States and Iran. The risk-off sentiment that had weighed on digital assets eased, allowing major tokens to reclaim value alongside surging stock futures. Bitcoin (CRYPTO: BTC) traded at $65,007.69, up 0.89%, while Ethereum (CRYPTO: ETH) led major gainers with a 3.37% increase to $1,941.88. This rally comes as prominent analysts suggest the cryptocurrency market may have found its bottom, driven by significant short covering and improving technical indicators.

The geopolitical catalyst was the suspension of US airstrikes on Iran, which had continued for 13 days, and the corresponding halt in Iranian retaliatory attacks since Friday night. Although Washington maintained a naval blockade of Iranian ports, the immediate de-escalation provided relief to global markets. Stock futures mirrored this optimism, with Dow Jones Industrial Average Futures jumping 253 points (0.49%), S&P 500 futures gaining 0.66%, and Nasdaq 100 Futures climbing 1.21% as of 8:50 p.m. EDT.

Market Dynamics and Liquidations

Despite the price appreciation, trading volumes remained active with notable position unwinding. Over $200 million was liquidated from the cryptocurrency market in the last 24 hours, according to Coinglass data. Of this total, $160 million consisted of bearish short positions being erased, indicating aggressive short covering. Bitcoin’s open interest fell 1.75% over the same period. A decrease in open interest alongside rising spot prices typically signals that short sellers are buying back contracts to exit positions rather than new long positions being established.

However, broader sentiment remained cautious. The Crypto Fear & Greed Index continued to reflect "Fear" in the market. Additionally, the global cryptocurrency market capitalization contracted by 0.54% over the last 24 hours, standing at $2.22 trillion. This divergence between price action in major assets and overall market cap contraction suggests liquidity may be concentrating in large-cap tokens while smaller assets face pressure.

Analyst Perspectives on Market Bottom

Michaël van de Poppe, a widely followed cryptocurrency analyst, declared that the market bottom is "very likely" in place. He expressed a strong preference for the Ethereum ecosystem and altcoins outperforming Bitcoin in the coming period. "Big week upon us," van de Poppe projected, betting heavily on ETH-related assets.

Technical analyst Jesse Olson identified a similar bullish signal using his custom Rainbow Moving Average indicator. Olson noted that an orange line crossed above a purple line, a pattern that previously signaled the start of a bull run when Bitcoin was priced at $16,900 in December 2022. "Few months to go, buy the right dip," Olson stated, suggesting the current dip presents a strategic entry point.

Top Gainers Amid Broader Caution

While major assets stabilized, specific altcoins with market caps exceeding $100 million saw sharper gains. Unibase (UB) led the pack with a 22.23% increase to $0.1498, followed by SOON (SOON) up 17.35% to $0.1969, and KAITO (KAITO) rising 15.42% to $1.18. These gains highlight speculative interest in smaller-cap tokens even as broader market sentiment remains fearful.

What the Numbers Show

The data reveals a market in transition characterized by short covering rather than organic long accumulation. The $160 million in liquidated short positions driving Bitcoin’s price up, combined with a 1.75% drop in open interest, indicates that the rally is largely fueled by bears exiting positions. This is further evidenced by the 0.54% contraction in total market capitalization despite Bitcoin’s stability. Investors are likely rotating capital into safer, large-cap assets amid geopolitical uncertainty, leaving the broader altcoin market vulnerable despite isolated outsized gains in tokens like Unibase.