'If the AI Trade Is Over,' Says Fidelity's Timmer, but What About Crypto?

According to Fidelity's Jurrien Timmer, the AI trade could be over, and the bull market will need to achieve more to maintain its upward trajectory. While the trend continuation is possible, the stock market would have to carry more weight independently.

The AI 'bubble' appears to be reaching its logical conclusion as enormous funding for AI companies couldn't continue indefinitely. Anthropic's recent announcement of its IPO roadshow launch on November 10 signals that existing investors may soon reap their rewards.

Market Transition Potential

The equal-weighted S&P 500 chart suggests a relatively healthier market environment, but as Timmer noted, 'in a top-heavy market it may not be enough' to keep driving the index higher.

Crypto markets might benefit from this transitional period, though it's not guaranteed, as both risk tolerance and available funds appear to be diminishing. Bitcoin would be the primary asset to benefit from such a transition if it occurs.

Confirmation Needed

A market recovery would only be confirmed with specific signs of a bull run on Bitcoin and larger-cap altcoins, including higher highs and consistent inflows into institutional products like ETFs. Until these signs emerge, a rapid transition of funds from AI to crypto remains unlikely.