Bitcoin Prices Plummet Amidst Shift Towards AI Funding

The cryptocurrency market continues to experience volatility, with Bitcoin's price dropping by 5.42% in the past seven days to trade at $73,693 on May 29.

One of the contributing factors to this decline is the IBIT ETF by BlackRock, which has seen its longest outflow streak since inception. Data from SoSoValue shows that IBIT has lost $2.042 million since May 15, with a single transaction on May 26 resulting in the sale of $1.3 billion worth of IBIT.

Analysts suggest that this trend is not necessarily due to investors de-risking, but rather rotating their funds towards other assets. The S&P 500 has actually seen an increase in value over the same period, moving from 7,408 to 7,563.

Whales and dolphins are also showing reduced interest in Bitcoin, according to CryptoQuant. This trend may be followed by retail investors, as 580,000 BTC purchased between $72,900 and $76,600 may soon be sold.

The influx of funds towards AI, particularly with Anthropic's Series H funding round raising $65 billion, is also seen as a contributing factor to the decline in Bitcoin's price. Analysts warn that this trend may continue, potentially draining liquidity from the cryptocurrency market and leading to a bearish long-term price forecast.