Virtual Asset Investment, 5 Years of Holding Results in 'Stagnation'...Crushing Defeat to AI Stocks

▲ Bitcoin (BTC), Ethereum (ETH), Cryptocurrency decline, Artificial Intelligence (AI) stocks/AI generated image

An analysis has emerged stating that the virtual asset market has significantly lagged behind traditional assets like stocks, incurring enormous opportunity costs for investors. Virtual assets have not shown a clear recovery since their peak in 2021. In contrast, AI-related stocks have recorded explosive growth, accelerating the flow of funds.

Cryptocurrency analyst Lark Davis diagnosed in a YouTube video on April 28 (local time) that Bitcoin (BTC) and Ethereum (ETH) have significantly underperformed stock market returns in recent years. He noted that while Ethereum has stagnated around the $2,300 level for an extended period, AI-related stocks such as NVIDIA have surged more than 14 times, assessing that virtual asset investment has virtually entered a long-term stagnation phase.

Bitcoin is currently under pressure at the upper resistance line of its ascending channel. If it fails to break through the recent average investor purchase price of $79,000, there is a possibility that it could be pushed back into a descending channel. Davis emphasized that whether it can firmly settle above the 200-day exponential moving average of $82,000 is key to a trend reversal. Although Arthur Hayes presented a year-end target price of $125,000, the current market lacks momentum due to low trading volume and weakening buying interest.

Policy uncertainty is also acting as a burden. The US cryptocurrency market structure bill is being delayed due to political conflict. Ethical controversies surrounding former President Donald Trump's family's virtual asset business have emerged, placing the bill at the center of political contention.

The macroeconomic environment is also unfolding unfavorably for virtual assets. Tensions in the Middle East have led to continued control of the Strait of Hormuz, causing Brent crude oil prices to rise, which contributes to global inflationary pressures. Unlike the stock market, which continues its upward trend despite these variables, the virtual asset market shows weakened rebound momentum due to limited capital inflow.

Davis analyzed that investment funds are shifting to industries that generate tangible returns. He stated that despite holding Bitcoin as a major asset, there was a significant disparity in returns compared to tech stocks like AMD and Micron Technology. For virtual assets to regain their investment appeal, the challenge remains to demonstrate practical utility and performance that exceeds expectations.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*