Michael Saylor, chairman of Strategy (formerly MicroStrategy), attributed Bitcoin's recent decline to capital rotation into artificial intelligence. He noted over $4.3 billion in Bitcoin ETF outflows since May 14 as evidence. Bitcoin has dropped 3.7% in the last 24 hours to around $63,429 and is down 13% over the past week. Saylor emphasized that this is not an impairment of Bitcoin but a capital rotation, with volatility creating opportunity. However, other factors also weigh on Bitcoin: Strategy itself sold 32 BTC for $2.5 million last week, a small portion of its $53.8 billion holdings, which analysts say could weaken market conviction. Macroeconomic uncertainties, including geopolitical risks and energy price concerns, further dampen demand for risk assets. The entire crypto market cap slid 3.1% in 24 hours to $2.29 trillion, with $1.74 billion in liquidations. Shares of Strategy (MSTR) fell 15% in five trading days to $128, and its preferred stock (STRC) dipped below $100 to $95.35.

Key facts

• Saylor says AI-driven capital rotation, not Bitcoin impairment, causes price drop.
• Bitcoin ETF outflows exceed $4.3 billion since May 14.
• Bitcoin fell 3.7% in 24 hours to $63,429, down 13% weekly.
• Strategy sold 32 BTC for $2.5 million, analysts warn of sentiment shift.
• Crypto market cap down 3.1%, $1.74 billion liquidated in 24 hours.

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