Bitcoin has fallen nearly 17% in the past week, marking its worst weekly performance since July 2024, with its market capitalization evaporating by approximately $200 billion in the last seven days. A new explanation has emerged for this decline: some long-term bulls believe the problem lies not in Bitcoin itself, but in the fact that speculative funds are flowing into AI-related assets.
ETFs experiencing continuous outflows
According to data from CoinDesk, Bitcoin is currently hovering below $60,000, down about 27% in the past month and more than 50% from its October 2025 high. Meanwhile, the US spot Bitcoin ETF has seen net outflows for 11 consecutive trading days since mid-May, with a cumulative outflow of approximately $3.45 billion, further exacerbating market pressure.
AI sector attracts venture capital
Those who support this view argue that Wall Street's recent enthusiasm for AI infrastructure, data centers, and large private equity funding is squeezing marginal liquidity in the crypto market. Mati Greenspan, founder of Quantum Economics, stated that Bitcoin is currently facing more of a liquidity problem than a collapse in asset faith.
Michael Thaler expressed a similar view on social media. He stated that the capital markets have provided approximately $400 billion to AI development over the past six months, while Bitcoin ETFs have seen outflows of approximately $4 billion since May 14th. In his opinion, this is more likely a rotation of funds than a sign of damage to Bitcoin's fundamentals.
Macroeconomic pressures continue to mount
However, not everyone accepts the single explanation that "AI is draining liquidity." The report cites analysts who say that Bitcoin is currently under multiple pressures, including high interest rates, inflation, ETF outflows, and a return of funds to popular tech stocks.
Furthermore, Strategy's earlier small-scale sale of Bitcoin was also seen by some market participants as a blow to sentiment. Although supporters argued that the sale of 32 BTC was negligible compared to its holdings of over 843,000 BTC, the market still viewed it as a negative signal.
Market divergence continues
Some Bitcoin supporters believe that as long as the network's fundamentals do not deteriorate significantly, this consolidation is more of a temporary pressure due to a shift in funding dynamics than a reversal of long-term logic. They point out that discussions regarding institutional adoption, regulatory frameworks, and "strategic reserve assets" have continued to progress in recent years.
Even if funds flow back from the AI sector in the future, it may not immediately improve the performance of the crypto market. Greenspan believes that if AI sentiment falters first, the market may experience a broader sell-off of risk assets, and Bitcoin may suffer another round of shocks.
