Summary
- Michael Saylor cited the surge in AI investments as a key factor for Bitcoin's recent downturn.
- He noted over $4 billion in ETF withdrawals as evidence of capital shifting away from Bitcoin.
- In the past month, Bitcoin has dropped 22%, while MSTR shares fell by 30%.
Michael Saylor, co-founder and chairman of Strategy, has attributed the recent volatility in Bitcoin prices to a significant capital shift towards artificial intelligence, despite some critics pointing to his companyโs recent BTC sale as a contributing factor.
Over the last 24 hours, Bitcoin has decreased by 3.7%, currently trading at $63,429. In the past week, the cryptocurrency has seen a decline of over 13%, reaching a low of $61,559 late Wednesdayโmore than 50% down from its peak in October 2025.
"The capital markets are investing in AI at an unprecedented scale," Saylor mentioned on X. "This represents a capital rotation rather than a decline in Bitcoin's value. Volatility presents opportunities."
Saylor emphasized that since May 14, Bitcoin ETFs have experienced significant outflows, totaling over $4.3 billion, as reported by Farside, indicating a broader trend affecting the value of his company's main treasury asset.
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The ETFs, which are often seen as indicators of Bitcoin demand, have not recorded a single day of positive inflows since May 13, when they attracted approximately $131 million.
Due to the continuous outflows, these exchange-traded products have shown negative flow figures for the year, suggesting that investors are looking for more lucrative options.
However, the pressure on Bitcoin isn't solely from ETF dynamics.
Last week, Saylor's company sold a small amount of its substantial Bitcoin holdings, offloading 32 BTC for $2.5 million. While this sale is minor compared to its total portfolio, analysts have previously indicated that any sale could alter market perceptions and reduce confidence in BTC.
Moreover, macroeconomic uncertainties stemming from ongoing geopolitical tensions and fears of rising energy prices are also dampening demand for riskier assets.
According to CoinGecko, the overall cryptocurrency market capitalization has decreased by over 3.1% in the last 24 hours, now standing at $2.29 trillion, leading to $1.74 billion in liquidations during this timeframe. Long positions in Bitcoin, which bet on price increases, accounted for $635 million in liquidations, as noted by CoinGlass.
In conjunction with Bitcoin's decline, shares of the firm (MSTR) have dropped 15% over the past five trading days, trading around $128. Additionally, the companyโs preferred stock, STRC, has fallen significantly below its $100 par value, currently priced at $95.35.