Bitcoin's Price Plunge Tied to AI Boom, Claims Strategy Founder

Michael Saylor, founder of Strategy, a leading Bitcoin treasury firm, has dismissed claims that his company is behind the recent decline in Bitcoin's value. Instead, he blames the surge in AI-related investments, which he believes have drained capital from Bitcoin.

Saylor pointed out that the market has seen a significant influx of funding for AI projects, with over $400 billion invested in just six months. In contrast, Bitcoin ETFs have witnessed around $4 billion worth of outflows since May 14, putting pressure on the cryptocurrency's price.

According to Saylor, this phenomenon is an example of 'capital rotation,' where investors are reallocating their funds from one asset class to another in response to changes in market conditions. He believes that once the AI-related investment frenzy subsides, the capital will flow back into Bitcoin, potentially triggering a new 4-year cycle for the cryptocurrency.