BlackRock vs. JPMorgan: Bitcoin or AI as the Next Capital Wave?
Wall Street giants BlackRock and JPMorgan are split on whether Bitcoin or AI will drive the next capital wave. BlackRock's head of digital assets, Robert Mitchnick, argues that Bitcoin's rally will resume as US fiscal deficit fears intensify, especially with midterm elections approaching. He ties Bitcoin's future to concerns over government borrowing and money printing, noting that Bitcoin has lagged partly due to AI's dominance. Currently trading near $64,360, down 49% from its October 2025 high, Bitcoin's macro hedge case may return. In contrast, JPMorgan CEO Jamie Dimon backs AI, citing massive spending of around $700 billion this year, low unemployment, and a strong S&P 500 index that broke 7,600. While Dimon warns of underlying geopolitical risks, he remains skeptical of Bitcoin, calling it a fraud in the past. The divergence is mirrored in market data: spot Bitcoin ETFs have seen $6.4 billion in outflows since May 7, and stablecoin balances have dropped $8 billion since May 22, indicating institutional capital flowing toward AI. NYDIG notes that Bitcoin's weakest months historically are August and September, but the macro debate could shift focus back to Bitcoin late in the year.
Key facts
- BlackRock: Bitcoin to benefit from US fiscal deficit fears, especially near midterms.
- JPMorgan: AI spending near $700B in 2025, driving S&P 500 above 7,600.
- Bitcoin at $64,360, down 49% from record; ETFs lost $6.4B since May 7.
- Stablecoin balances down $8B since May 22, signaling capital shift to AI.
- NYDIG: August and September historically weak for Bitcoin; macro focus may shift later.