Speculative capital is shifting away from cryptocurrency markets and toward other high-growth tech narratives, notably artificial intelligence and robotics, according to research from Delphi Digital. In a Wednesday post on X, the firm argued that last year’s underperformance across altcoin sectors dented crypto’s appeal as a default destination for risk-seeking capital. The takeaway is not simply a reshuffle within crypto, but a broader competition for speculative dollars as investors chase narratives with the most dynamic risk-adjusted returns. The post highlights how crypto must compete with every exponential technology thesis vying for attention and money in a crowded tech landscape.
“Crypto isn’t just competing with other crypto anymore. It’s competing with every exponential technology narrative vying for speculative dollars.”
The implications of this shift extend beyond narrative sentiment. Market data show a relative deterioration in crypto prices against select tech-enabled sectors. Bitcoin (CRYPTO: BTC) has slipped about 12% over the past year, while the Global X Robotics and Artificial Intelligence ETF has gained roughly 13% over the same period, according to TradingView. In contrast, altcoins outside the top 10 have fared worse, with declines surpassing 30% in many cases. The juxtaposition underscores a landscape where risk appetite is increasingly tethered to the perceived upside of AI and robotics rather than a broad crypto beta.
As Aurelie Barthere, principal research analyst at crypto intelligence platform Nansen, notes, the outflow from crypto into AI-themed plays is not solely about price momentum. “Another key factor is the repricing of Fed rate cuts, with markets now pricing an elevated terminal rate of around 3.8% over the next five years, which tightens liquidity conditions for risk assets,” Barthere told Cointelegraph. She adds that crypto-specific headwinds are accumulating amid broader macro pressures and ongoing regulatory uncertainty.
The regulatory environment has become a material driver of sentiment. This week, the US Senate Agriculture Committee delayed a markup of its version of the Market Structure bill to Thursday from Tuesday due to a severe winter storm, a development Cointelegraph reported earlier. The delay signals continued legislative uncertainty at a time when crypto markets are grappling with liquidity constraints and questions about how new rules will shape market structure, exchange transparency, and enforcement. The outcome of this process remains a watch item for asset allocators who want to understand how any forthcoming framework may affect crypto flows relative to traditional tech equities and ETFs focused on AI and robotics.
On the funding side, the past year has seen a paradox: while risk capital is pulling back from some corners of crypto, interest remains robust in robotics and AI. CrunchBase data show robotics startups raised a cumulative $13.8 billion in 2025, up from $7.8 billion in 2024 and exceeding the prior record of $13.1 billion in 2021. This surge reflects continued VC appetite for real-world deployment potential in automation, perception systems, and autonomous capabilities. In the same period, crypto-focused venture activity remained resilient but cooled somewhat, with VC funding reaching about $18.2 billion across 902 deals in 2025, up roughly 80% from $10.1 billion across 1,548 deals in 2024, according to Rootdata.
Year-end data reveal a dramatic slowdown in deal activity, even as overall investment remained elevated relative to early 2024. November closed with about $3.1 billion raised across 67 deals in crypto, followed by December’s $700 million across 59 deals, marking a sharp 77% monthly decline. The broader context includes a notable October event—the record $19 billion crypto market crash that occurred as geopolitical tensions and regulatory anxieties weighed on markets. That event, described by market trackers as the largest liquidation wave since the April 2021 spike, helped cool demand for riskier crypto exposure as investors recalibrated assumptions about risk, liquidity, and leverage. The dynamics underscore a market entering a state of recalibration, with capital seeking alignments between disruptive tech narratives and risk-managed exposure in crypto markets.
Alongside these developments, high-profile pieces of market data and analysis have emphasized a broader pattern: capital is chasing opportunities with clearer, near-term applicability in AI-driven products and automated systems. The divergence in performance between a benchmark like BTC and a robotics-focused ETF illustrates a bifurcated investment thesis becoming more pronounced in late 2025 and into 2026. The debate now centers on whether crypto assets can reassert a unique growth narrative or whether the next phase of speculative capital resides primarily in AI-enabled platforms and robotics-enabled services.
Market reaction and key details
Delphi Digital’s takeaway centers on a reallocating investor base. The firm asserts that crypto’s risk premium has shifted as investors weigh the potential of AI-centric sectors against the more uncertain tail risks associated with crypto-native innovations. This thesis is reinforced by the price trajectories of the period: while BTC retraced, robot-focused equities, and related AI exposure captured attention and capital in a way that crypto did not. The narrative suggests a multi-asset environment where portfolios diversify into AI, robotics, and automation themes to balance volatility and potential upside.
The macro backdrop—policy expectations, rate trajectories, and legislative progress—will continue to shape how capital flows between crypto and alternative technology narratives. With the Fed’s terminal rate being priced higher than earlier expectations, liquidity tightness in risk assets is likely to persist. Policymakers’ actions on regulatory clarity will also play a decisive role in determining whether crypto can re-enter the risk-on mix or remain relatively anchored as a niche within the broader technology landscape.
Investors should also watch for developments in robotics and AI deployment. The robust fundraising activity in robotics, contrasted with crypto venture capital, suggests a bifurcated risk environment where automation technologies may provide more immediate cost savings and productivity gains. For market participants, the question is whether crypto can demonstrate differentiated value—such as programmable money, on-chain asset security, or novel financial primitives—that excites a similar level of risk appetite as AI and robotics narratives.
From a liquidity and market structure perspective, ongoing regulatory scrutiny and potential policy changes will influence how capital is allocated across risk assets. The liquidity landscape remains a critical variable for traders and institutions evaluating the relative attractiveness of crypto versus AI-enabled tech groups. The possibility of further regulatory clarity—whether through comprehensive crypto legislation or more targeted reforms—could either unlock or constrain the ability of crypto markets to attract speculative capital aligned with cutting-edge technology themes.
Why it matters
For traders, the shift toward AI and robotics signals a broader redefinition of where growth can come from in the tech sector. Crypto may need to demonstrate distinctive capabilities—such as improved settlement efficiency, programmable financial tools, or novel tokenized ecosystems—to regain a leadership role in speculative capital allocation. For builders and founders, the data points to a competitive landscape where robotics and AI startups attract capital and talent at a time when crypto ventures face heightened scrutiny and regulatory uncertainty. The evolution also matters for policy-minded readers who watch how regulatory clarity and policy incentives influence the relative appeal of crypto versus other exponential technologies.
Investors in the crypto space should prepare for a more nuanced contribution landscape. A bifurcated market could persist, with AI and robotics narratives drawing capital to propulsive business models while crypto markets consolidate and await clearer regulatory guidance. This environment may translate into distinctive risk/return profiles across sectors, underscoring the importance of diversified exposure and disciplined risk management as the technology investment cycle evolves.
Ultimately, the narrative is about timing, transparency, and the alignment of capital with durable value creation. As AI and robotics ecosystems mature, they may offer tangible returns that appeal to risk-tolerant investors, while crypto markets adapt to tighter monetary conditions and ongoing policy negotiations. The path forward will depend on policy outcomes, macro liquidity, and the pace at which AI-enabled solutions scale across industries, creating a broader ecosystem of demand for advanced technologies beyond digital assets alone.
What to watch next
- Regulatory progress on the Market Structure bill: any firm scheduling of a markup or clarifications that affect crypto exchanges and on-chain activity.
- Macro policy signals: Fed rate decisions and updated rate-path expectations that influence liquidity for risk assets.
- Robotics/AI funding trends: continued VC data for 2026 and potential record-breaking rounds in AI/automation.
- Market reactions to policy outcomes: liquidity availability and how the crypto market adapts to policy clarity or further uncertainty.
Sources & verification
- Delphi Digital’s X post citing the shift of speculative capital toward AI and robotics narratives.
- TradingView data on Bitcoin price performance and the Global X Robotics and Artificial Intelligence ETF performance.
- CrunchBase data on robotics startup fundraising for 2025.
- Rootdata data on venture funding in crypto for 2025, including deal counts and totals.
- Cointelegraph reporting on US Senate Agriculture Committee delay of the Market Structure bill markup and broader regulatory context.
Shifting capital: Crypto markets pivot toward AI and robotics amid policy headwinds
Speculative capital appears to be rotating away from broad crypto exposure and toward technologies with clear, near-term productivity and deployment advantages. Delphi Digital’s analysis highlights a multi-asset dynamic in which investors are weighing the potential upside of automated systems, machine perception, and autonomous processes against the volatility and regulatory risk still attached to crypto markets. The narrative underscores a growing skepticism among risk-tolerant traders who once treated crypto as a primary growth engine but are now chasing opportunities in AI and robotics that promise tangible, real-world applications and scalable economics.
The data narrative supports a tale of divergent performance. Bitcoin (CRYPTO: BTC) has retraced over a 12-month horizon, while the robotics and AI space has shown resilience with an ETF proxy delivering positive returns. Altcoins outside the leading ranks have fared far worse, with many recording declines well into double digits. The disconnect between crypto price action and AI/robotics performance raises questions about the resilience of crypto’s risk premium and whether the sector can reestablish a compelling growth narrative amid a sea of competing technology stories.
Beyond price action, the broader macro backdrop is shaping risk sentiment. Market participants are recalibrating expectations for rate cuts and the trajectory of the terminal rate, now priced higher than earlier in the cycle. This repricing tightens liquidity for risk assets, including digital assets, and nudges investors toward assets with clearer cash flows or scalable business models such as automation and AI-enabled services. The regulatory horizon adds another layer of uncertainty, particularly as policymakers work through how to define and oversee crypto markets within a rapidly evolving technology landscape.
In late 2025, the robotics and AI funding environment demonstrated a strong runway for real-world deployment. Robotics startups attracted substantial capital: about $13.8 billion was raised in 2025, a marked increase from 2024’s $7.8 billion and surpassing the 2021 record of $13.1 billion. The momentum reflects a sustained investor appetite for technologies with tangible operational efficiencies and measurable productivity gains. Crypto venture funding, while still sizable, followed a different cadence, registering roughly $18.2 billion across 902 deals in 2025—an 80% year-over-year rise from $10.1 billion across 1,548 deals in 2024. Yet, the late-year cadence cooled dramatically, with November activity giving way to a December slowdown, signaling caution as markets and policymakers assess next steps for both crypto and AI ecosystems.
As the regulatory narrative unfolds, market participants will be testing a core hypothesis: can crypto regain a role as a disruptive force within finance while AI and robotics deliver tangible operational and economic gains elsewhere? The answer will depend on policy clarity, liquidity conditions, and the pace at which AI-enabled platforms unlock efficiencies across industries. For now, the evidence points to a nuanced ecosystem where capital seeks the most compelling narratives across a spectrum of exponential technologies, rather than a single discipline dominating the imagination of risk-tolerant investors.
