On Monday, Bitcoin experienced a 2% decline, settling around $64,200. This drop is attributed not to a specific event but rather to corporations that previously supported Bitcoin now redirecting their focus towards artificial intelligence, according to Alex Kuptsikevich, chief market analyst at FxPro.
The overall cryptocurrency market also fell by 2%, totaling approximately $2.18 trillion, with around ten cryptocurrencies decreasing for every one that increased.
The companies shifting their attention are those that previously provided institutional support for crypto, particularly holders like Strategy and miners such as Marathon Digital Holdings, which have spent the last two years rebranding themselves to focus on AI data centers.
Kuptsikevich noted that institutional investors are now divesting from Bitcoin to enhance liquidity or to invest in other opportunities. With corporate enthusiasm waning, there is a risk that Bitcoin liquidations could speed up in the coming weeks.
Unlike the typical retail investors who often enter the stock market late and bear the losses, corporations embraced crypto when it boosted their image. As these companies depart, Kuptsikevich suggests that Bitcoin will return to its retail roots, even if the exit is painful for current holders.
Currently, Bitcoin is slightly above its 50-day moving average, which has remained relatively stable for the past three weeks, indicating a stalemate between sellers and buyers. Observers are advised to monitor whether this support level holds.