Artificial intelligence continues to dominate market narratives, drawing capital and research attention away from other sectors that may be recovering, according to an analysis by Citrini Research. The firm argues that this “attention tax” has left several industries under-covered, even as valuations in AI-related trades show signs of crowding and fatigue.
At the same time, broad shifts in capital allocation are becoming visible across asset classes, with digital assets, aviation, and financial technology all reflecting the effects of this concentrated focus.
Attention concentrates risk across markets
Citrini says the intense focus on AI has narrowed market participation, leaving less capital available for alternative themes. This has contributed to a disconnect where certain sectors are improving fundamentally but remain underpriced.
The impact extends beyond equities. Total digital asset market capitalization has dropped about 54% from its October 2025 peak, wiping out roughly $2.2 trillion in value over eight months. The decline highlights how capital has rotated toward a smaller group of dominant narratives.
Digital assets face sustained pressure
Bitcoin has reflected this shift, briefly falling below $60,000 in recent sessions. The decline has been accompanied by steady outflows from U.S. spot ETFs, with withdrawals averaging close to $300 million per day.
Macroeconomic conditions are adding further pressure. Hawkish signals from the Federal Reserve, combined with a stronger U.S. dollar and higher Treasury yields, have made non-yielding assets less attractive. Market sentiment has deteriorated sharply, with one widely followed index dropping to 8 out of 100, indicating extreme fear among traders.
Key price levels are now in focus. Analysts are watching the $58,000 to $60,000 range as a critical support zone. A break below that range could open the path toward $50,000, a move prediction markets currently assign a 57% probability before year-end.
Heavy selling has also triggered widespread liquidations. Nearly $1 billion in leveraged positions were wiped out over a 24-hour period, with about 80% coming from long trades. Such events often reduce excess leverage and lead to a period of consolidation.
Aviation and travel show early recovery signs
Outside AI-driven trades, the aviation sector is beginning to stabilize after an 18-month downturn. Shares of Delta and United declined during that period due to tariff-related inflation and oil price shocks, but those pressures are now easing.
Citrini expects revenue growth to be supported by a shift toward premium services. International travel demand could also receive a boost from the 2026 World Cup, which is likely to increase cross-border passenger flows.
Demographics support senior housing demand
Demographic trends are driving a separate recovery in U.S. senior housing. The population aged 80 and above is projected to grow more than 56% over the next decade, while supply remains constrained.
Between 2026 and 2029, households in this age group are expected to double from one million to two million. Companies such as Welltower, Janus Living, and Brookdale Senior Living are positioned to benefit, with sector performance tied more to population dynamics than policy or technology shifts.
Live entertainment maintains strong momentum
Live entertainment continues to stand out as a strong-performing segment. Consumer spending has increasingly shifted toward in-person experiences, supporting companies like TKO Group, Cinemark, and IMAX.
TKO has benefited from rising media rights tied to WWE and UFC, while IMAX recently reached a record share price amid sustained demand for premium viewing formats.
Competition emerges in futures trading
The dominance of CME Group in U.S. interest-rate derivatives is facing new competition from FMX Futures Exchange. Backed by major banks and trading firms, FMX launched in early 2024 with a valuation of about $667 million.
The platform is attempting to gain market share through lower fees, margin efficiencies, and incentives for liquidity providers. It recorded a peak daily volume of 9,500 contracts in February 2025. Although activity dropped sharply during April’s tariff-driven volatility, volumes have since stabilized. CME currently generates around $2 billion annually from U.S. Treasury-related products, leaving room for competitors.
Financial technology shows signs of bottoming
Financial technology stocks may also be stabilizing after a period of decline. By late May, SoFi had fallen roughly 35% year-to-date, while Robinhood and Upstart were down about 25% before rebounding.
SoFi reported record loan issuance of $12.2 billion in the first quarter and launched its SoFiUSD stablecoin, lifting quarterly revenue to $1.1 billion and membership to 14.7 million. Robinhood posted a 45% increase in revenue in 2025 and doubled net profit, supported by its acquisition of Bitstamp and growth in its Gold subscriber base to 4.3 million users. Leadership changes at Upstart have also renewed attention on its AI-driven credit platform.
Citrini concludes that as market focus gradually broadens beyond semiconductors and data centers, these overlooked sectors could see renewed interest from traders.
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