Billions from AI back into crypto, insiders say

Large institutional investors who left crypto in recent years to focus on artificial intelligence are on the verge of returning to the digital asset landscape. That is according to industry insiders who manage hundreds of millions of dollars. Martin Masser, CEO of cryptocurrency exchange ChangeNOW, is noticing signs in various places that interest is renewing.

In brief:

• Institutional investors want to engage with crypto again after focusing on AI
• Masser expects large amounts of liquidity to flow back into crypto markets
• Stablecoins and bank integrations strengthen the ecosystem and adoption

Insiders expect a massive return of capital

According to Masser, several financial institutions have openly said that they see the AI sector cooling down and are wondering where their money will go next. Many of them are considering a return to crypto after turning their backs on it for years. “Many of them simply say: we will spend the money on IPOs first, then we will come back to crypto,” Masser says.

The crypto market has been struggling for years with a shortage of new project launches. Masser points out that genuine token launches outside of memecoins have become rare. This has had consequences for the traditional altcoin season in which smaller coins can grow explosively in value.

Stablecoins and bank integrations strengthen confidence

An important difference from previous years is the increased acceptance among traditional financial institutions. Where institutions three to four years ago still resolutely slammed the door shut on crypto conversations, major banks are now willing to explore stablecoin integrations and other software solutions.

Masser sees precisely strong signals in these small steps of adoption and openness. Acceptance of stablecoins strengthens the entire ecosystem and makes the crypto industry more attractive to conservative investors. This contributes to a fundamentally changed sentiment in the financial world.

Uncertainty about the scale of the new cycle

Although Masser is cautious with predictions, he speaks of strong signals of confidence. But he also admits that it is uncertain whether we will get a new altcoin season period like before. “A lot of the self-confidence has been taken out of the market,” he says. It also remains unclear whether alternative coins will return to their earlier prominence if the AI cycle does indeed cool down.