Bitcoin fell more than 14% in one week and 22.7% in four weeks. Strategy president Michael Saylor gives a simple explanation for the decline: It’s capital turnover, not depreciation.
In an article on
Essentially, he argued that institutions are taking money out of bitcoin and deploying it into AI, leading to weakness in the leading cryptocurrency. This is important because rotation involves temporary, capital-driven weakness that chases a hot theme before eventually finding its way back.
“Volatility creates opportunity,” said Saylor, a typically bullish executive at the largest Bitcoin-holding company on the planet.
Saylor Strategy recently sold 32 BTC, a move that analysts said added to bearish market sentiment, worsening the price drop. The publicly traded company still holds 843,706 BTC.
While some analysts have pointed to the AI boom as a headwind for bitcoin, most bears have drawn a darker conclusion from the recent selloff: that the crypto is simply broken.
“Bitcoin looks broken at this point, even Saylor is selling now,” pseudonymous trader QE Infinity said on X.
Their case likely rests on a confluence of worrying signals: Saylor’s surprise sale of 32 BTC, weeks of massive ETF outflows, and the striking fact that almost every major asset class, from stocks to commodities, is trading at or near record highs, while Bitcoin languishes.
