Bitcoin tumbled to multi-year lows on Thursday, marking one of its steepest declines in recent memory. The cryptocurrency's slide comes as Coatue Management founder Philippe Laffont publicly questioned Bitcoin's long-term prospects, instead favoring AI and space as clearer bets.
Equity markets, by contrast, are staging a sharp rebound. S&P 500 Index futures climbed 0.7% as of 7:42 a.m. in New York, driven by a forecast from Micron Technology that reinvigorated the artificial intelligence trade. The semiconductor maker's outlook suggests sustained demand for AI-related chips, lifting sentiment across the tech sector.
The divergence underscores a growing wedge between risk-on assets. While Bitcoin struggles with regulatory headwinds and waning investor confidence, AI-linked stocks are benefiting from concrete earnings narratives and corporate spending on infrastructure. Laffont's remarks — questioning whether Bitcoin can maintain its store-of-value status — add to the bearish sentiment around cryptocurrencies.
Micron's guidance may set the tone for the broader AI ecosystem, with analysts watching for ripple effects across Nvidia, AMD, and other chipmakers. However, some caution that the rebound could be short-lived if macroeconomic data softens or if the Federal Reserve signals tighter policy. Bitcoin's slide also raises questions about whether the crypto market is decoupling from equities or simply repricing risk.