K33 Research warns of a tough summer for Bitcoin as investor focus shifts to AI stocks, leading to significant ETF outflows.
Bitcoin is poised for a challenging summer as investor attention shifts towards artificial intelligence (AI) stocks, according to K33 Research.
Investor Focus Shifts to AI Stocks
K33 Research highlights that despite bitcoin being undervalued relative to equities, the growing allure of AI stocks is making cryptocurrency investments less attractive.
As of June 2, 2026, Bitcoin's price has dipped to approximately $67,000, driven by a significant capital shift towards AI assets. This trend is underscored by notable outflows from bitcoin exchange-traded funds (ETFs), which have seen the second-largest three-week outflow on record.
K33 previously indicated that $60,000 might be the cycle's low point, but analysts are now cautious due to increasing leverage and waning institutional interest, raising concerns about further price declines.
Vetle Lunde from K33 noted that institutional demand for bitcoin is weakening, highlighted by substantial ETF outflows and increased risks in the derivatives market. He remarked, “The market largely perceives the opportunity cost of maintaining BTC holdings as too high while AI-related assets are surging.”
Bitcoin has struggled to reclaim its 200-day moving average, while major indices like the Nasdaq and S&P 500 continue to reach new heights. Upcoming tech IPOs, including those from SpaceX and Anthropic, may also be drawing investments away from cryptocurrencies.
Reassessing Market Sentiment
K33's outlook has shifted, as the firm reassesses the $60,000 support level initially seen as the bottom for this cycle. Previously, negative funding rates in perpetual futures markets had suggested a potential for short squeezes, contributing to a rise in bitcoin prices up to $83,000. However, this upward momentum has been halted.
The current derivatives landscape shows a significant decrease in CME bitcoin futures open interest, the lowest since October 2023, indicating that institutional investors are reducing their involvement. Additionally, rising funding rates in perpetual futures amidst falling bitcoin prices suggest that leveraged long positions are being established in a declining market.
While K33 has not entirely ruled out the possibility of $60,000 being the cycle's low, their stance has turned more cautious. They warn that the pressure from leveraged positions could signal deeper declines ahead. Lunde concluded, “With external capital hesitant to enter and current holders reducing their exposure, we might be facing a turbulent summer.”
