Michael Saylor said capital fleeing into the artificial intelligence boom, not weakness in Bitcoin (BTC), drove the asset's slide toward $61,000 this week.
Key Points:
- Saylor framed Bitcoin's drop as a capital rotation into AI, rejecting claims that Strategy's selling caused it.
- Spot Bitcoin ETFs have shed about $4 billion since May 14, pulling the price to February lows.
- One analyst said Bitcoin could fall toward its realized price near $53,000 if AI-driven outflows persist.
Saylor Blames Bitcoin Rotation
Strategy founder Saylor argued on X Thursday that capital markets had funneled roughly $400 billion into artificial intelligence infrastructure over the past six months, draining demand elsewhere.
He framed the shift as a rotation, not a Bitcoin impairment, adding that the volatility creates opportunity for patient buyers. Spot Bitcoin ETFs, he noted, have bled about $4 billion since May 14.
Wall Street now pegs combined hyperscaler spending above $600 billion for 2026 alone, dwarfing the sums moving through crypto. The framing also landed days after Strategy sold 32 BTC, its first disposal since 2022. That move unsettled investors who had taken his long-standing "never sell" stance at face value.
Also Read: Bitcoin Briefly Slips Under $62K As Liquidations Sweep The Market
Schiff And Analysts Weigh Bitcoin
Longtime critic Peter Schiff rejected the read, calling the drop a collapse rather than volatility as traders fled to cut losses. He branded the selloff "a rejection of your entire thesis." The gold advocate has gone further this week, predicting an eventual slide under $20,000.
Other analysts backed the rotation case. SpaceX lists next week, while Anthropic and OpenAI are expected to debut between June and October. Bitwise advisor Jeff Park cleared Strategy of blame, saying Bitcoin was being tapped to fund the market's next crowded trades.
The distinction matters for the months ahead. A structural exit would mark a deeper shift in how institutions value Bitcoin, while a passing rotation points to a rebound. Several traders, including Wintermute's Jake Ostrovskis, expect the pressure to ease only after the year's marquee AI listings clear.
Bitcoin Price Tests Key Support
Sustained redemptions stripped away the institutional bid that had cushioned earlier dips, leaving a thin market. Bitcoin fell to February lows near $61,000, its worst week of 2026 after a decline topping 13%. Analyst James Van Straten warned the correction could reach the realized price near $53,000, echoing the 2018 and 2022 bear markets.
Capital.com data showed Bitcoin logging more than 433,000 trades and over $584 million in volume across nine days, with activity climbing as the price fell. Senior market analyst Daniela Hathorn said that divergence stood out, since trade counts usually thin during a slide rather than swell. She added that Strategy's sale "accelerated a decline that was already underway."
The retreat caps a punishing run for Bitcoin, which set a record near $126,000 last October before shedding about half its value. This week's slide alone erased more than $600 billion from the total crypto market. In earlier cycles, the price clawed back above its average cost basis once forced selling burned out, a pattern holders are watching again.
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