Angel Investor Jason Calacanis Urges Bitcoin Holders to Sell for AI Investments
Venture capitalist and angel investor Jason Calacanis has advised Bitcoin holders to divest their holdings and reallocate capital into artificial intelligence, citing the cryptocurrency as a “dead network” with limited future potential.
A Bold Prediction for Bitcoin
In a post on X dated October 27, 2026, Calacanis articulated his bearish outlook on Bitcoin, predicting it could decline to its 2026 low of $57,000 within the next 12 months. His forecast extends beyond a short-term dip, as he expressed a belief that Bitcoin will never again reach its all-time high.
Calacanis’s argument is built on two key pillars: a price prediction and a capital allocation strategy. Regarding price, he linked his $57,000 target to the ongoing outflows from Bitcoin exchange-traded funds (ETFs).
The Allure of Artificial Intelligence
On the capital allocation front, Calacanis posited that Bitcoin’s primary function as a store of value is now overshadowed by the immense opportunities presented by AI and what he termed “super intelligence.” He contended that the significant value creation in these emerging sectors is driving capital away from Bitcoin.
The term “dead network” was used provocatively to describe Bitcoin as an asset lacking vitality, rather than suggesting the network itself has ceased to function.
Continued Crypto Involvement Through Bittensor
Despite his critical stance on Bitcoin, Calacanis has not entirely exited the cryptocurrency space. He confirmed his continued investment in TAO, the native token of the Bittensor network.
Bittensor operates as a decentralized network that incentivizes participants to contribute computing power, storage, and other services essential for AI development. Contributors are rewarded with TAO tokens for providing the foundational resources needed for AI advancement.
Calacanis highlighted this incentive structure as the rationale for his continued investment in TAO. He framed his position not as a bet on crypto as a monetary asset, but rather as an investment in AI infrastructure that utilizes a token to manage contributions and compensation.
A Shift in Investment Philosophy
This pivot towards AI is not a recent development for Calacanis. In 2023, he had already advised crypto founders to shift their focus toward artificial intelligence, urging them to prioritize building AI companies over launching new crypto projects. The current advice, however, is directed at investors and includes a specific price target for Bitcoin.
Examining the Data and Market Signals
Calacanis’s thesis relies heavily on the trend of ETF outflows. However, recent flow data has presented a more mixed picture, with spot Bitcoin ETF flows experiencing fluctuations in both directions. His comments, reportedly, coincided with a $110 million inflow into these products.
When evaluating Calacanis’s call, it is important to consider its nature. It represents the opinion of a single investor, disseminated via social media, with a defined 12-month timeframe and a specific price target. The $57,000 figure is notable as it represents a return to a level Bitcoin had already reached earlier in 2026, suggesting a potential retest scenario rather than a complete collapse.
The claim that Bitcoin will “never another all-time high” is a more significant assertion than the price target. This structural argument directly challenges the long-held belief among many Bitcoin holders that each market cycle eventually leads to new record highs.
Key indicators to monitor include daily spot Bitcoin ETF flows to ascertain whether the outflow trend persists or if inflows become the norm. Investors should also watch AI-linked tokens like TAO to see if they continue to attract capital that might otherwise be allocated to Bitcoin. Finally, the $57,000 level for Bitcoin itself will be a critical point to observe; a return to this price within Calacanis’s 12-month window could elevate his provocative statement into a forecast that demands serious consideration.
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