Billionaire Ken Griffin Says AI Is "Almost Certainly" in a Bubble. Here's What That Means for Crypto Investors.

At Citadel's Future of Global Markets Conference in New York, billionaire hedge fund investor Ken Griffin dropped a bombshell on the audience. He noted that AI was "almost certainly" in a bubble. That's the bad news.

The good news is that Griffin also expressed optimism about the long-term prospects of any companies that survive the bursting of the bubble. However, it's almost impossible to tell who the final winners and losers are going to be, and that's why the stock market is struggling to find the right valuations for many AI stocks.

If you're a crypto investor, that opens up several potential investment strategies.

Sell AI, buy crypto

The safest strategy is to minimize the risk of the AI bubble bursting. Stay clear of highly speculative AI cryptos and instead pivot into safer, more established names. At the top of the list would be Bitcoin (CRYPTO: BTC), which has long been viewed as a potential safe haven during volatile markets.

Already, some investors say they have noticed a rotation of capital from AI into crypto. In part, this has been driven by Bitcoin's phenomenal returns over the past few months. Bitcoin has surged back to $80,000 from a summer low of $60,000.

Invest in the intersection of AI and crypto

However, ignore AI's future potential at your own peril. While it may be hard to spot winners and losers right now, it's a near certainty that AI will lead to long-term economic growth and productivity gains.

Image source: Getty Images.

Griffin suggested a few areas where investors could see future gains. He pointed out, for example, that companies have seen "uneven" results in their application of AI technology. They have spent a fortune on AI, but have yet to see results. Here's where blockchain technology, which powers the crypto economy, could make a real difference.

Cathie Wood of Ark Invest has already highlighted the growing intersection of AI and blockchain technology. Top crypto executives, including Coinbase Global CEO Brian Armstrong, have also highlighted potential synergies between AI and blockchain technology, especially in the AI agent economy.

With that in mind, one investment option might be NEAR Protocol (CRYPTO: NEAR), a Layer 1 blockchain network optimized for agentic AI. The hype around AI agents explains why NEAR is up nearly 180% this year.

Avoid "pivot to AI" cryptos

Just be careful about investing in crypto stocks or cryptocurrencies that are based on a last-minute pivot to AI. For that reason, I'm avoiding all the Bitcoin mining stocks that are reinventing themselves as AI infrastructure plays. And I'm staying clear of any digital asset treasury company that is dumping its crypto holdings and moving into AI.

These "pivot to AI" crypto buys could generate short-term returns. But if the AI bubble bursts, they will almost certainly be wiped out. So look for long-term, buy-and-hold investments that can survive the coming AI shakeout.

Dominic Basulto has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin and NEAR Protocol. The Motley Fool recommends Coinbase Global. The Motley Fool has a disclosure policy.