Bitcoin Crashes to $67K While AI Tokens Surge: The Great Rotation

Bitcoin touched $70,000 on Wednesday. By Thursday, it was back at $67,000—a 2% drop that wiped out the week's gains. But here's the twist: while Bitcoin stumbled, AI-linked tokens soared. Is this the beginning of crypto's great rotation?

The Tale of Two Markets

While Bitcoin, Ethereum, and Solana all shed 2%, a different story was unfolding in the AI corner of crypto. Internet Computer (ICP) jumped 6% to $2.56. Render (RENDER) and Bittensor (TAO) followed suit, riding the wave of renewed AI optimism sparked by Nvidia's blockbuster earnings.

The standout performer? Decred (DCR), which has nothing to do with AI but everything to do with decentralized governance. It surged 16% to $34.58—the highest since November. Over the past four weeks, DCR has gained more than 80%, making it the best-performing top-100 token.

The catalyst? A February 8th change to Decred's treasury rules that's finally catching investor attention.

Futures Market Sends Warning Signals

Beneath the surface, the derivatives market is flashing red. Cumulative crypto futures open interest has plummeted to $93.5 billion—multi-month lows that show how quickly Wednesday's optimism evaporated.

On Deribit, institutional players are stacking up protection. ETF holders and corporate treasuries are buying put options at the $60,000 strike, expiring in 6-12 months. Translation: smart money is betting Bitcoin could crash below $60K.

The numbers don't lie. One-month Bitcoin puts trade at a 7% premium to calls. Put spreads—bearish strategies—accounted for 75% of total block flow over 24 hours. Even CME Bitcoin futures open interest hit yearly lows, suggesting institutional participation is waning.

The AI Exception

What makes AI tokens different? Real utility and revenue models. The DFINITY Foundation just proposed burning 20% of Internet Computer's cloud revenue—introducing deflationary mechanics tied to actual network usage. The remaining 80% would reward node operators based on performance, not fixed emissions.

It's a stark contrast to Bitcoin's energy-intensive mining model. As Jensen Huang declared AI is "only getting better," investors are rotating into tokens with clear AI infrastructure plays.

Giottus.com CEO Vikram Subburaj advises caution: "Long-term investors may consider staggered accumulation near support zones rather than deploying lump sums at resistance."