Speculative capital is increasingly moving away from cryptocurrency markets and into emerging technologies such as artificial intelligence and robotics, according to new research from Delphi Digital. As progress on US crypto regulation remains slow, investor appetite for high-risk digital assets has weakened, allowing other exponential tech narratives to take the lead.
Delphi Digital noted that crypto is no longer the default destination for speculative capital seeking outsized returns. Instead, investors are now weighing crypto against a broader set of fast-growing technologies competing for the same risk-hungry capital.
Speculative Capital Shifts From Crypto to AI and Robotics
Delphi Digital highlighted that the underperformance of most altcoin sectors over the past year reflects a broader shift in investor behavior. Crypto is no longer just competing internally among tokens—it is now competing with AI, robotics, and other frontier technologies for speculative dollars.
Market performance supports this trend. Over the past year, Bitcoin has declined by roughly 12%, while the Global X Robotics and Artificial Intelligence ETF gained about 13%. Altcoins outside the top 10 have performed even worse, falling more than 30% over the same period.
According to Aurelie Barthere, principal research analyst at Nansen, macroeconomic and regulatory pressures are amplifying crypto’s underperformance. Markets have repriced expectations for US Federal Reserve rate cuts, now factoring in a higher terminal rate over the next several years. This tighter liquidity environment has weighed heavily on risk assets, including cryptocurrencies.
At the same time, regulatory uncertainty continues to act as a crypto-specific headwind. Political gridlock surrounding the CLARITY crypto market structure bill has dampened sentiment, adding further pressure to an already cautious investor landscape. The bill recently faced another delay after the US Senate Agriculture Committee postponed its markup amid severe winter weather.
Venture Capital Trends Show Diverging Paths for Tech and Crypto
While speculative trading capital has shifted toward AI and robotics, venture funding trends paint a more nuanced picture. Investment into robotics startups has accelerated sharply, with companies raising $13.8 billion in 2025—nearly double the $7.8 billion raised in 2024 and surpassing the previous record set in 2021.
Crypto venture capital activity also rebounded earlier in the year. Total crypto VC funding reached $18.2 billion across 902 deals in 2025, representing an 80% increase from the $10.1 billion raised in 2024. However, deal flow slowed significantly toward year-end, with funding dropping 77% from November to December.
This slowdown followed a historic $19 billion crypto market liquidation in early October, triggered by renewed trade tensions after US President Donald Trump threatened to escalate tariffs on Chinese goods. The event marked the largest liquidation on record, surpassing the $9.9 billion crash seen in April 2021 during early anti-money-laundering crackdown concerns.
