Strategy founder Michael Thaler attributed the recent weakness in Bitcoin to a shift of funds towards AI trading. He stated on social media that capital markets are investing in AI infrastructure at an unprecedented scale, and this rotation of funds is suppressing Bitcoin's performance, rather than indicating a problem with Bitcoin itself.
ETF outflows continue to suppress prices
The article mentions that since May 14, US spot Bitcoin ETFs have seen a net outflow of approximately $4.4 billion. Bloomberg ETF analyst Eric Balchunas described this period as a "difficult time." On a weekly average basis, the net outflow is approximately $292 million, representing the largest investor withdrawal since November 2025.
With institutional buying failing to materialize significantly, the price of Bitcoin briefly fell to around $61,000, near its February lows. The article states that the recent market correction coincided with a reallocation of risk funds.
AI IPOs are seen as a diversion of funds.
Thaler believes that the capital markets have poured approximately $400 billion into AI expansion over the past six months. Some market participants also support this assessment. Jake Ostrovskis, head of OTC trading at Wintermute, and analyst Benjamin Cowen believe that Bitcoin may continue to face pressure in the short term as several high-profile AI companies move forward with their IPOs.
The article mentions that the market's focus window begins next week with SpaceX's IPO, followed by potential listings of companies like Anthropic and OpenAI between June and October. Some believe that risk-averse funds are prioritizing AI IPOs and hot technology deals.
Bitwise advisor Jeff Park also stated that he does not believe strategy is the main reason for this round of Bitcoin decline. It is more likely that the market is using Bitcoin as a source of liquidity to move funds to participate in the next hot trade.
Strategy's sale of 32 BTC sparks discussion.
The article also mentions that Strategy previously sold 32 bitcoins, a move that caused unease among some investors. This is because Thaler has long been a proponent of the "don't sell Bitcoin" stance, and therefore this reduction in holdings was seen as a sensitive signal by some market participants.
However, Thaler still describes the current volatility as an opportunity, not a trend-damaging move. In contrast, longtime Bitcoin critic Peter Schiff argues that this is not normal volatility, but rather investors selling Bitcoin to avoid greater losses or move on to better opportunities.
Analysts are focusing on the $61,000 and $53,800 price range.
Regarding future price movements, analyst James Van Straten stated that Bitcoin's current decline has slowed near the 200-week moving average. However, he also pointed out that, based on historical performance during the bear markets of 2022 and 2018, this correction could still extend further to the target price range of approximately $53,800.
Overall, the core disagreement presented in the article lies in two points: one side believes that Bitcoin's liquidity has only been temporarily drained by the AI hype, while the other side argues that the price decline reflects a reassessment of its investment logic. In the short term, ETF fund flows and the pace of AI IPOs remain key areas of market observation.
