Bitwise Warns Crypto Loses 'Belle of the Ball' Status to AI Stocks

On June 3, Bitwise CIO Matt Hougan stated crypto is no longer the market favorite, shifting to a contrarian bet as institutions rotate into AI-linked equities. The Nasdaq-100 has gained ~43% year-over-year while Nvidia has surged nearly 1,500% since ChatGPT’s launch, leaving major cryptos lagging with Bitcoin down 24% YTD and Ethereum down 36%. Total crypto market capitalization fell to $2.38 trillion after a 5.3% daily drop, now 46% below its October peak, though smaller fundamentally driven tokens posted sharp one-month gains. Regulatory uncertainty around the Clarity Act, with only a ~55% passage probability on Polymarket, continues to restrain institutional flows. Hougan views the rotation as a sign the bear market may be maturing, favoring patient, fundamentals-focused investors.