Speculative capital is increasingly moving away from cryptocurrency markets and into emerging technologies such as artificial intelligence and robotics, according to new research from Delphi Digital.
The research firm said stalled progress on United States crypto regulation continues to dampen investor appetite for digital assets across the risk spectrum.
Delphi Digital noted that last year’s weak performance across most altcoin sectors signals that crypto is no longer the default destination for speculative capital.
Crypto isn't just competing with other crypto anymore. It’s competing with every exponential technology narrative vying for speculative dollars.
Delphi Digital said.
The shift highlights how high-risk capital is now chasing narratives with clearer growth trajectories and fewer regulatory uncertainties.
Market data reinforces the trend as Bitcoin fell around 12% over the past year, while the Global X Robotics and Artificial Intelligence ETF rose roughly 13% over the same period.
Altcoins outside the top 10 tokens have performed even worse, declining by more than 30% according to TradingView data.
Analysts say the rotation does not reflect a collapse in crypto interest but rather a reallocation toward sectors with stronger momentum.
Aurelie Barthere, principal research analyst at Nansen, said macroeconomic pressures remain a key drag on crypto performance.
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 said.
Barthere added that political uncertainty around crypto-specific legislation continues to weigh on sentiment.
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.
While speculative capital rotates into AI-focused applications, venture investment in robotics has accelerated sharply.
Robotics startups raised a cumulative $13.8 billion during 2025, up from $7.8 billion in 2024, according to Crunchbase data.
The figure surpassed the previous record of $13.1 billion raised in 2021, underscoring growing confidence in the sector.
Venture capital investment in crypto remained resilient on a yearly basis despite increased volatility.
Crypto-focused VC funding reached $18.2 billion across 902 deals in 2025, up roughly 80% from $10.1 billion in 2024, according to Rootdata.
Despite the annual increase, deal activity slowed sharply toward the end of the year.
Funding fell from $3.1 billion across 67 deals in November to $700 million across 59 deals in December, marking a 77% monthly decline.
The slowdown followed a $19 billion crypto market crash in early October after President Donald Trump threatened to escalate tariffs on Chinese goods.
The event became the largest liquidation on record, surpassing the $9.9 billion liquidation seen in April 2021, according to Coinglass data.