Crypto investment firm Arca has disputed Michael Saylor's claim that last week's Bitcoin selloff was caused by AI capital rotation, instead blaming Saylor's own company, Strategy. On June 1, Strategy disclosed selling 32 BTC worth about $2.5 million, leading to Bitcoin's 14% drop to $60,000. Arca's Chief Investment Officer Jeff Dorman argued that the market reaction was not about the sale amount but its implication: Strategy may need to sell more Bitcoin to cover dividend obligations on its preferred shares, including STRC. Dorman noted Strategy has roughly five months of cash flow remaining, creating uncertainty. He suggested a potential stabilization scenario if Strategy raises $2-4 billion to cover dividends through 2028, but doubted Saylor would act, calling him 'addicted to buying Bitcoin.' A bright spot was that BTC's selloff initially stayed contained within Bitcoin, with its dominance rate falling below 58%, indicating growing market sophistication. However, by week's end, the downturn broadened to most assets.

Key facts

• Arca blames Strategy's 32 BTC sale for BTC crash, not AI rotation.
• Market fears Strategy may need to sell more Bitcoin for dividend payments.
• Strategy has only about five months of cash flow remaining.
• BTC dominance fell below 58%, showing initial resilience in altcoins.
• Dorman suggests a $2-4B capital raise could stabilize, but doubts action.

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