Angel investor Jason Calacanis has stirred discussions in the cryptocurrency community, particularly regarding Bitcoin’s future, by labeling it a “dead network.” In a post on X dated October 27, 2026, he advised Bitcoin investors to sell their holdings and redirect their resources towards artificial intelligence (AI), emphasizing a significant shift in investment focus.
A Grim Outlook on Bitcoin
Calacanis set a bearish price target of $57,000 for Bitcoin, suggesting it could fall to this level within the next year. He further asserted that he does not believe Bitcoin will ever reach its previous peak value, characterizing it as an asset that has lost its vibrancy, despite the network itself remaining operational.
Analyzing the Investment Thesis
Calacanis’s perspective is twofold: it involves both a forecast for Bitcoin’s price and a proposal for capital allocation. He linked the predicted price decline to ongoing outflows from Bitcoin exchange-traded funds (ETFs). According to him, the asset’s traditional function as a store of value is increasingly overshadowed by the potential value creation from AI and what he termed “super intelligence.” He argued that these booming sectors are attracting capital away from Bitcoin.
Continuing with Bittensor’s TAO
Despite his criticisms of Bitcoin, Calacanis remains invested in the cryptocurrency associated with Bittensor, namely the TAO token. Bittensor is designed to incentivize users for providing computing resources necessary for AI development, rewarding them in TAO. The distinction made by Calacanis indicates that his investment in TAO is less about cryptocurrency as a traditional monetary asset and more about supporting the underlying infrastructure for AI development.
Historical Context of the Shift
This isn’t the first time Calacanis has advocated for a pivot away from cryptocurrency towards AI. In 2023, he advised entrepreneurs in the crypto space to transition their efforts into AI ventures, criticizing the sustainability of new crypto projects.
The ETF Flow Dynamics
Calacanis’s analysis hinges significantly on the movement of funds in and out of Bitcoin ETFs. However, recent data indicates that ETF flows have not solely been negative, as there have been instances of substantial inflows, including a notable $110 million inflow reported concurrently with his comments. This mixed data challenges the simplicity of his bearish outlook.
Implications for Investors
Investors should regard Calacanis’s statements as personal opinions, delivered through social media, and framing a specific target within a 12-month timeline. The $57,000 target reflects a level Bitcoin has previously touched in 2026, suggesting a potential retest rather than an outright collapse. The statement asserting Bitcoin will never hit a new all-time high represents a more profound structural argument and counters the prevailing hope among long-term holders who anticipate future peaks.
Monitoring Key Indicators
For investors, several factors merit close observation:
- Daily spot Bitcoin ETF flows to determine the trend of outflows versus inflows.
- Interest in AI-related tokens, including TAO, to see if they continue to attract capital from Bitcoin.
- Movement around the $57,000 price level to assess if it holds significant relevance as a support point within the next year.
Disclosure: This article was edited by Vivian Nguyen. For more information on how we create and review content, see our Editorial Policy.
