Whether it's the world of finance or artificial intelligence (AI), billionaire Changpeng Zhao never shies away from sharing his opinion. The founder of the Binance crypto exchange, he recentl
Whether it's the world of finance or artificial intelligence (AI), billionaire Changpeng Zhao never shies away from sharing his opinion.
The founder of the Binance crypto exchange, he recently shared his bold take on the rotation of "hot money."
Related: Elon Musk's 2025 Tesla pay could buy nearly 10% of all Bitcoin
On Sep. 2, Zhao wrote on X that some "hot money" is flowing back from AI to crypto.
Hot money refers to capital that moves quickly toward whatever asset investors think offers the best opportunity for returns.
Investors poured millions into public AI companies like NVIDIA Corporation (Nasdaq: NVDA), Advanced Micro Devices (Nasdaq: AMD), and Broadcom (Nasdaq: AVGO) for much of this year due to the AI boom.
But Bitcoin's fortune turned following the U.S. Treasury's Aug. 19 announcement to at least double the amount of longer-term government bond buybacks.
The move spurred a return of liquidity to the crypto market, and Bitcoin began rallying from around $64,500 on Aug. 19 to above $81,000 in late August.
Though Bitcoin has since declined to around $77,300 today, Zhao didn't fail to underline the rotation of "hot money" from AI to crypto.
BTC/USD, Source: DecibelThough there is a lot of discussion around AI potentially replacing everything, Zhao argued that money is not going anywhere. Both people and AI will need money, he added.
AI can't make money obsolete because money is required to buy resources, pay employees, and sign deals, he suggested. Even AI agents need money to execute transactions.
Related: Roundtable 100 analysts rank Bitcoin lower than Ether, Solana, and HYPE
