Bitcoin faces prolonged weakness as capital rotates into AI equities, with spot ETFs posting their second-largest three-week outflow streak.
Bitcoin is poised for a volatile summer as investors prioritize high-growth AI stocks over cryptocurrencies. The shift follows record outflows from spot bitcoin ETFs, which shed 62,794 BTC in three weeks, the second-largest streak on record.
Analysts cite fading institutional demand and rising leverage in derivatives markets as key risks. While $60,000 was previously seen as a cycle low, deeper losses are now possible amid competition from AI-driven equities and upcoming tech IPOs.
The divergence is stark: Bitcoin remains below its 200-day moving average, while the Nasdaq and S&P 500 hit new highs. Capital is flowing toward potential IPOs like SpaceX and Anthropic, further pressuring crypto allocations.