Digital Assets Lose Appeal to Investors as AI and Robotics Draw Speculative Funds: Delphi
Investment capital seeking speculative opportunities is shifting toward emerging technologies like AI and robotics, while stagnation in US cryptocurrency regulatory frameworks dampens interest in digital assets, according to Delphi Digital.
Investment funds targeting high-risk opportunities are moving away from digital currency markets toward emerging technological sectors including artificial intelligence and robotics, research firm Delphi Digital has indicated.
The weak performance of the majority of alternative cryptocurrency sectors throughout last year demonstrates that digital assets are no longer serving as the "default destination" for speculative investment capital pursuing higher-risk ventures, Delphi Digital noted in a post shared on X this Wednesday.
"Crypto isn't just competing with other crypto anymore. It's competing with every exponential technology narrative vying for speculative dollars."
This pattern suggests that opportunities in emerging technology sectors may continue to constrain capital flows into the broader digital asset ecosystem, particularly from aggressive investors pursuing sectors offering the most attractive risk-to-return characteristics.
Available market data confirms this emerging pattern. Bitcoin (BTC) has experienced approximately 12% depreciation during the previous year, whereas the Global X Robotics and Artificial Intelligence ETF has registered gains of roughly 13% across the identical timeframe, based on TradingView information. Alternative cryptocurrencies positioned beyond the top 10 tokens have experienced even steeper declines, dropping over 30%.
Despite cryptocurrency investor capital shifting toward artificial intelligence applications, the sector's weak performance can additionally be linked to ambiguity surrounding monetary policy frameworks and digital asset regulatory developments, as explained by Aurelie Barthere, principal research analyst at cryptocurrency intelligence firm Nansen.
"Another key factor is the repricing of Fed rate cuts, with markets now pricing an elevated terminal rate of around 3.8% over the next five years, which tightens liquidity conditions for risk assets," Barthere told Cointelegraph.
"At the same time, political gridlock around the CLARITY bill has weighed on sentiment, adding an additional crypto-specific headwind alongside broader macro pressures," Barthere added.
The legislative framework addressing cryptocurrency market structure encountered an additional setback this week following the US Senate Agriculture Committee's decision to postpone a planned markup session for its iteration of the legislation from Tuesday to Thursday, after severe winter weather conditions impacted the United States, as Cointelegraph reported on Monday.
Robotics investments rise as VC crypto interest sinks at the end of 2025
Capital deployment into robotics startup companies is gaining momentum, with these firms collectively securing $13.8 billion throughout 2025, representing an increase from the $7.8 billion raised in 2024 and surpassing their prior record year of $13.1 billion obtained in 2021, based on data from CrunchBase.
Venture capital firms continue maintaining their presence in cryptocurrency markets, evidenced by VC funding climbing to $18.2 billion distributed across 902 transactions during 2025, representing approximately 80% growth compared to the $10.1 billion secured across 1,548 transactions in 2024, per information from data aggregator Rootdata.
Nevertheless, investment activity experienced significant deceleration as the year concluded, dropping from $3.1 billion spread across 67 transactions in November to merely $700 million across 59 transactions in December, representing a 77% month-over-month decrease.
The decline in activity occurred subsequent to the unprecedented $19 billion cryptocurrency market liquidation event at the start of October, triggered by US President Donald Trump's warnings regarding potential tariff escalations on Chinese imports.
This event established itself as the largest liquidation occurrence in recorded history, eclipsing the $9.9 billion liquidation witnessed in April 2021, which was attributed to early speculation surrounding a comprehensive Anti Money Laundering enforcement initiative, according to information from Coinglass data.