Just 1-2 years ago, one of the hottest words on Wall Street was Bitcoin.

With expectations for ETF approvals, the influx of institutional investors, and the Trump administration's pro-cryptocurrency policies, Bitcoin once surpassed $120,000, reaching an all-time high.

However, the atmosphere has completely changed in 2026. Bitcoin has fallen over 30% this year and recently dropped to just above $60,000, continuing its bearish trend.

Many people attribute this decline to the Bitcoin sell-off led by Strategy, headed by Michael Saylor.

In fact, Strategy had long been associated with the symbolic image of "never selling," so the news of them selling some Bitcoin shocked the market significantly.

However, many analysts in the U.S. financial sector believe that this is not the main reason.

The real reason is the movement of money.

On Wall Street, this is referred to as 'Capital Rotation'.

Investor money always moves to the most attractive places. And currently, the hottest area in the U.S. market is not cryptocurrency, but AI.

The generative AI boom that started in 2023 has become a massive industry that drives the U.S. stock market, rather than just a trend.

Funds are pouring into almost every sector related to AI, including data center construction, semiconductors, server equipment, power infrastructure, and fiber optic companies.

In particular, semiconductor-related stocks have seen explosive growth over the past year, capturing investors' attention.

There is another variable at play: the large IPO company SpaceX.

Market discussions also include the potential IPOs of major AI-related companies, not just SpaceX.

From an investor's perspective, holding Bitcoin may seem less appealing compared to investing in next-generation AI companies or space industry firms, which could offer greater profit opportunities.

While funds are flowing out of Bitcoin ETFs, massive amounts are being funneled into AI-related ETFs and semiconductor ETFs.

This year, billions of dollars have exited Bitcoin ETFs, while over $20 billion has flowed into semiconductor-related ETFs.

Whereas investors used to ponder whether to buy stocks or Bitcoin, now they are considering whether to buy AI stocks, wait for the SpaceX IPO, or buy Bitcoin.

Wall Street experts say that for Bitcoin to regain a strong upward trend, a new catalyst is needed.

The effects of ETF approvals have already been priced into the market, and the influx of institutional investors has not been as explosive as expected.

Interestingly, not many people have a negative long-term outlook on Bitcoin.

Rather, many analyses suggest that the current decline is not the death of Bitcoin, but a temporary shift in market interest.

In fact, Michael Saylor recently described the Bitcoin downturn as "not a problem with Bitcoin, but a phenomenon of capital rotation towards AI."

Ultimately, what is happening in the U.S. market right now is not just a cryptocurrency crash.

Wall Street's money is moving towards new dreams in AI and large IPOs.

Whether Bitcoin will become the main character in the market again or if AI will continue to attract funds for several more years remains uncertain.

However, it is clear that the center stage of the U.S. investment market is shifting from cryptocurrency to AI.