T. Rowe Price's crypto head, Blue Macellari, suggests AI equities have diverted 'marginal buyers' from crypto due to faster, more visible returns. Despite this, she maintains a bullish long-term outlook for crypto, citing accelerating institutional adoption and the expanding total addressable market due to AI agents transacting on-chain.
This filing discloses Blue Macellari's perspective on the current crypto market dynamics. She argues that the rapid growth and visible returns in AI equities have siphoned off 'marginal buyers' who previously invested in cryptocurrencies like Bitcoin and Solana. This shift explains some of crypto's recent struggle to capture upside, despite a period of intense positive news flow. However, Macellari remains bullish long-term, pointing to accelerating institutional interest, the expanding total addressable market due to AI agents, and the development of on-chain finance infrastructure. For traders, this presents a nuanced view: short-term headwinds from AI competition, but long-term opportunities in specific areas like on-chain finance, with Hyperliquid (PURR) highlighted as a potential beneficiary.