BlackRock's head of digital assets Robbie Mitchnick said on June 22 that artificial intelligence investments have drawn capital away from Bitcoin and other alternative assets. Mitchnick stated that Bitcoin's performance since late 2025 mirrors a broader trend affecting non-AI assets, as investors increasingly focus on AI-related opportunities including chipmakers, hyperscalers, and technology IPOs. U.S. spot Bitcoin ETFs recorded outflows of $396.6 million on June 3 and $325.7 million on June 5, according to Farside Investors, reflecting uneven institutional demand despite growing adoption.
AI Investment Surge Diverts Capital From Bitcoin
Mitchnick said in an interview with Yahoo Finance that the AI boom has drawn capital away from a range of alternative assets, including Bitcoin, gold, and precious metals.
"It's been a tough stretch for Bitcoin since last October for all of crypto and that's consistent in many ways with just about everything that is not AI-centric," Mitchnick said.
Mitchnick stated: "The AI momentum is certainly sucking a lot of the oxygen out of the room."
Reuters reported that Bitcoin is on track for one of its worst starts to a year in more than a decade as AI-related investments continue to dominate market narratives.
Bitcoin was trading at $64,590 at the time of writing.
BlackRock Identifies U.S. Debt Concerns as Potential Bitcoin Catalyst
Mitchnick said growing concerns over U.S. debt levels and fiscal deficits could become a catalyst for Bitcoin as the 2026 midterm elections approach.
U.S. debt held by the public reached approximately $31.6 trillion as of June 3, while total gross federal debt stood at roughly $39.2 trillion, according to U.S. Treasury data. The Government Accountability Office has warned that debt is projected to grow faster than the economy for decades.
"If we start to see U.S. debt levels and the deficit situation come back into focus, fairly likely to happen around the midterms," Mitchnick said, "I think that we'll start to see probably a renewal in that momentum."
Mitchnick stated that concerns over government borrowing and potential money printing remain one of the most important long-term drivers for Bitcoin demand, similar to gold. "The more fear there is over the borrowing level and the risk of money printing, that is ultimately the most important, I think fundamental driver ahead," he said.
FAQ
What did BlackRock say about Bitcoin and AI on June 22?
BlackRock's head of digital assets Robbie Mitchnick said on June 22 that AI investments have drawn capital away from Bitcoin and other alternative assets. He stated that Bitcoin's performance since late 2025 mirrors a broader trend affecting assets outside the AI sector.
How much did U.S. spot Bitcoin ETFs lose in early June?
U.S. spot Bitcoin ETFs recorded outflows of $396.6 million on June 3 and $325.7 million on June 5, according to Farside Investors.
What is the current level of U.S. federal debt?
U.S. debt held by the public reached approximately $31.6 trillion as of June 3, while total gross federal debt stood at roughly $39.2 trillion, according to U.S. Treasury data.
