ParaFi Partner: AI Cash Could Flow to Bitcoin After Bust

Jeff Park, a partner at ParaFi Capital, predicted that capital concentrated in artificial intelligence could move into Bitcoin if AI valuations fall. Park tied his forecast to the volume of venture funding that flowed to AI in early 2026.

Venture funding in the first quarter of 2026 allocated roughly 80% of global venture capital to AI firms, according to industry data. Chipmakers and cloud computing providers were among the largest recipients. At the same time, pure crypto projects drew fewer fresh investments and Bitcoin traded near the $60,000 support level in recent months.

ParaFi manages more than $1.9 billion in assets. On social media, Park wrote that the wealth created around AI is “very bullish for BTC” and said that when asset-liability mismatches unwind, capital can flee to assets without fixed maturities, naming Bitcoin as one such destination.

Arthur Hayes, co-founder of BitMEX, has argued that AI has absorbed market cash and reduced the pool of capital available to crypto. He warned that AI investment could continue to dominate until valuations correct.

Critics say the outcome is uncertain. Some analysts point to a growing correlation between technology stocks and cryptocurrencies and warn a sell-off in AI could trigger losses across both asset classes. Others highlight that rising debt costs or unsustainable spending on data centers and software could pressure AI firms and broader markets simultaneously. A separate group of investors is directing funds to projects that combine AI and blockchain, which could retain some capital within crypto-related development.

Supporters of Bitcoin describe it as an asset without fixed maturity that can attract long-term capital. Whether AI-related funds move into Bitcoin will depend on the size and speed of any AI valuation decline, investor risk tolerance and how closely crypto prices track equity markets during a downturn.