Following a surge in equities driven by AI, experts anticipate that macroeconomic policies and market dynamics will take precedence.
By Helene Braun|Edited by Stephen Alpher Jul 1, 2026, 1:00 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on (Unsplash)SummaryShow- Experts foresee that AI, Federal Reserve policies, and evolving market structures will influence both cryptocurrency and equity markets in the latter half of the year.
- Mark Connors, a former executive at Credit Suisse, suggests that AI is creating a divide between companies that can harness its benefits and those that may face disruption.
- Chris Sullivan of Hyperion Decimus believes that bitcoin's traditional four-year cycle is still relevant and sees a potential bullish turnaround as the market becomes excessively bearish.
The initial half of the year was characterized by the AI trend, while the latter half may focus on identifying which companies and assets will truly benefit from it.
This year has seen a stark contrast between the cryptocurrency and equity markets. While the enthusiasm for AI has driven tech stocks to new heights, bitcoin BTC$58,447.53 has seen a significant decline of 46%, dropping to $58,300 on Tuesday.
Market experts suggest that as investors navigate through a phase where AI, monetary policies, and changing market structures are likely to influence equities and cryptocurrencies, they should be prepared for potential volatility, despite a generally stable economy.
Mark Connors, former global head of portfolio and Risk Dimensions CIO at Credit Suisse, noted that AI is no longer positively affecting the technology sector across the board. He emphasized that it is now distinguishing between firms that are developing AI infrastructure and those whose products or services could be at risk due to advancements in AI technologies.
"The market is being cleaved in two," he remarked in an interview with CoinDesk, highlighting Accenture's recent stock drop as a sign that investors are reevaluating consulting firms as generative AI automates various knowledge-based tasks. He also noted weaknesses in software companies like Autodesk and Intuit, indicating ongoing pressure on traditional software providers.
He anticipates that macroeconomic uncertainty will continue to be a major influence on financial markets. Data from Kestrel shows that correlations among stocks, bonds, commodities, and cryptocurrencies have increased in recent months, indicating that investors are responding more to policy changes rather than company-specific fundamentals.
"The remainder of the year is likely to be chaotic," he stated, asserting that uncertainty regarding Federal Reserve policies and Treasury financing could lead to market volatility before conditions improve.
Chris Sullivan, co-founder and portfolio manager at the digital asset hedge fund Hyperion Decimus, shares a similar outlook of heightened uncertainty but argues that investors are overly focused on market narratives rather than the underlying market mechanics.
He contended that the structural changes following the introduction of U.S. spot bitcoin exchange-traded funds (ETFs), along with institutional hedging in derivatives markets, have altered bitcoin’s trading dynamics, disrupting many of its historical correlations with broader macroeconomic indicators.
Recent declines in bitcoin have also challenged the notion that it had moved beyond its traditional four-year cycle. After the rollout of U.S. spot bitcoin ETFs, some market observers suggested that institutional investments would stabilize bitcoin's volatility and end its familiar boom-and-bust cycles. Sullivan disagrees, asserting that the current downturn aligns with historical market trends and that he is waiting for a definitive bottoming pattern before declaring the bear market concluded.
"We are approaching a phase where it’s so bearish that it’s bullish" in terms of risk-reward dynamics, he stated. Sullivan anticipates bitcoin will find a bear-market bottom between $54,000 and $58,000, arguing that improving on-chain fundamentals and historically low investor sentiment could create a favorable environment for long-term investors once the present uncertainty subsides.
Bitcoin NewsRelated AssetsBitcoin$58,447.530.20%Latest Crypto News- 1Bitcoin opens the third quarter in an historical red zone after rare losing first half30 minutes ago
- 2Europe is rewriting its landmark crypto rulebook MiCA as hard July 1 deadline passes31 minutes ago
- 3Ark Invest bought more than $75 million of crypto shares during June bloodbath1 hour ago
- 4XRP, HYPE funds are the bright spots as investors flee bitcoin, ether ETFs1 hour ago
- 5Bitcoin options traders load up on $50,000 puts and gold futures flash a death cross2 hours ago
- 6Aave logs biggest network-growth day in nearly 5 years as DeFi interest returns2 hours ago
- 7Bitcoin’s 20% June crash looks even deadlier on the charts. Here’s why5 hours ago
- 8Live markets: U.S. spot bitcoin ETFs had their worst month ever in June, shedding $4.5 billion5 hours ago
- 9Anthropic restores AI models Fable, Mythos after the U.S. lifts export controls6 hours ago
- 10Why Poland is the only EU country where crypto firms can't get a MiCA license6 hours ago
Building the Zcash Machine: Tachyon and Quantum Readiness
Building the Zcash Machine: Tachyon and Quantum Readiness
Zcash’s Tachyon upgrade aims to scale shielded payments, improve quantum readiness, and test whether its funding, security, and governance can hold.
By CoinDesk ResearchJun 30, 2026Commissioned byGenZcashZcash’s Tachyon upgrade aims to scale shielded payments, improve quantum readiness, and test whether its funding, security, and governance can hold.
Why it matters:
Zcash’s Tachyon upgrade aims to scale shielded payments, improve quantum readiness, and test whether its funding, security, and governance can hold.
View Full ReportMore From Markets