Bitcoin’s increasing divergence from technology stocks is raising concerns amid a surge in AI-related spending, according to Quinn Thompson.
Quinn Thompson, CIO at Lekker Capital, says Bitcoin continues to show warning signals, with his fund maintaining a bearish outlook on crypto heading into the summer months.
He points to a mix of structural headwinds weighing on the market, including ongoing digital asset treasury (DAT) issues, uncertainty surrounding Strategy’s preferred stock STRC, and continued concerns that future quantum computing advances could threaten Bitcoin’s underlying security framework.
Alongside weaker liquidity conditions and sustained selling pressure, these factors have contributed to one of the widest gaps between Bitcoin and technology equities in recent history, with crypto underperforming even as the broader tech sector remains strong.
Thompson also warns that the broader investment landscape could face additional strain from a wave of major IPOs—including SpaceX, Anthropic, and OpenAI—which may attract trillions in capital and reduce liquidity available for other assets.
He highlights the underperformance of the Magnificent Seven compared with the broader Nasdaq as a key signal. In healthy bull markets, leadership typically comes from the largest names, but he notes that recent gains have instead been driven by semiconductor and AI supply-chain companies rather than the hyperscalers that initially led the rally.
According to Thompson, these hyperscalers face growing pressure as massive AI-related capital expenditures weigh on free cash flow, increase leverage, and limit share buyback activity.
At the same time, reducing spending could weaken the semiconductor and AI infrastructure trade that has supported much of the broader tech sector’s momentum.
He concludes that rising IPO supply will increasingly compete for investor capital and attention, leaving a challenging outlook for both AI leaders and the wider market in the near term.
