Bitwise CIO Matt Hougan said crypto is becoming a contrarian bet as the market struggles with weak performance, ETF outflows, low spot volumes, and growing competition from AI stocks.

In his latest weekly memo, Hougan said Bitcoin is down 21% this year, while Ethereum, Solana, and XRP have fallen 33%, 37%, and 31%, respectively. He said the market has lost momentum as investors rotate toward AI stocks, robotics companies, and private market names such as SpaceX.

Hougan said the shift is forcing crypto to move from a momentum driven market into a contrarian trade. That change, he said, is making investors more focused on revenue, fundamentals, and protocols with clearer business models, such as Hyperliquid.

Crypto is…