AI Coding Company Cognition just raised $1 billion at a $26 billion valuation, while Bitcoin hovers around $75k, and ETF funds are continuously flowing out.

This is not an isolated funding news. Cognition’s $1 billion is a heavy bet by capital on the AI programming track. Lux Capital, General Catalyst leading, Founders Fund co-investing—these names have frequently appeared during the crypto bull market. Now, they are betting on the narrative that AI will replace junior engineers.
On the same day, Jefferies predicted that crypto IPOs could generate a trillion-dollar market, but the market response was lukewarm. Bitcoin spot trading volume dropped to its lowest since 2023, and volatility also narrowed accordingly. Funds are not flowing into crypto but are rushing into AI infrastructure and semiconductors—SK Hynix leveraged ETFs traded over $1 billion daily, with semiconductors accounting for 18% of the S&P 500 market cap, hitting a record high.
Structural divergence is accelerating. The AI track has absorbed risk capital and retail enthusiasm that might have otherwise flowed into crypto. Cognition’s valuation logic—$26 billion for $1 billion in funding, roughly a 26x sales multiple—stands in stark contrast to the token valuation models of crypto projects. The latter are still seeking new narrative anchors, while AI has entered the commercialization phase.
Caution is needed: the AI funding boom itself is also creating a bubble. Cognition’s product is still in early stages, with GPT-5.5 scoring only 34.5% on Huawei’s new benchmark tests. Capital chasing hype does not equal technological maturity. When the AI narrative cools down, will funds flow back into crypto? Currently, there are no signs of that.
$btc #etf #crypto market