Jason Calacanis Foresees Bitcoin Downfall: A Shift Towards AI Investments
Jason Calacanis, a prominent investor in Silicon Valley, recently advised cryptocurrency founders to pivot their focus from crypto to artificial intelligence (AI) stocks. In a new warning, he predicts a significant drop in Bitcoin’s value, suggesting that investors should consider selling their holdings before another crash occurs.
Potential Price Decline for Bitcoin
On Tuesday, Calacanis projected a decline in Bitcoin’s price to $57,000 within the next year, a decrease of nearly 29% from its then-current price of $79,774. He further expressed skepticism about Bitcoin’s ability to reach another all-time high, stating, “A brutal year for Bitcoin is just getting started.”
Calacanis’s Track Record with AI
Calacanis has been recognized for his foresight in technology trends, having previously invested early in companies like Uber and Robinhood. His timely guidance in June 2023 to shift investments towards AI has yielded substantial returns; an investment of $10,000 in Nvidia from that period would now be valued at approximately $56,100, while Bitcoin’s potential return from the same timeframe was around $30,100.
The Market’s Response to His Bitcoin Forecast
Following emerging trends, Calacanis notes a waning interest in Bitcoin compared to the promising economic potential of AI technologies. He urged investors to “Just sell and shift from Bitcoin to Super Intelligence,” branding Bitcoin as a “dead network.”
Current market conditions indicate some validity to his claims, as Bitcoin has declined roughly 37% from its peak near $126,200 in October 2025. Recent losses reported by US spot Bitcoin ETFs approximately reached $773 million between October 22 and 23.
A report from Glassnode highlights that these ETFs purchased their Bitcoin at an average price of around $81,500, putting them at a significant loss at the current price levels. However, on October 26, ETF inflows saw a recovery of approximately $110 million, indicating that the market may not be exhibiting a consistent trend of institutional selling just yet.
The Rise of AI Stocks
Comparatively, AI and semiconductor stocks have shown remarkable performance. Over the past year, semiconductor stocks have risen approximately 62%, while Bitcoin has seen a 30% decline. Despite this downturn, Bitcoin maintains a positive correlation with technology stocks, with a 90-day correlation coefficient with the Nasdaq at 0.38 as of October 25.
Notably, Calacanis’s own investment in the AI-related cryptocurrency Bittensor (TAO) also faced challenges, experiencing a decline of about 40% in the last year.
Looking Ahead
Looking forward, Alex Thorn from Galaxy Digital suggests that Bitcoin may have reached its bottom in June and anticipates a possible recovery towards $125,000, contingent on easing long-term selling pressures. However, this bullish outlook would be challenged if Bitcoin remains priced below approximately $76,540, making the upcoming weeks crucial for evaluating the validity of Calacanis’s cautionary stance.
For further reading, refer to the original article by Lockridge Okoth at BeInCrypto.
