The cryptocurrency market is having a tough week. Bitcoin ($BTC) and altcoins, already on a downward trend, are experiencing sharp declines following Strategy’s long-standing $BTC sale.
At this point, Bitcoin fell to $63,000 and Ethereum (ETH) to $1,770, and Strategy founder Michael Saylor spoke after the sell-off.
Saylor stated that the flow of capital from Bitcoin to artificial intelligence is not a threat to the value of $BTC, but rather a form of capital rotation.
Strategy founder Michael Saylor stated that the recent capital inflow from Bitcoin and ETFs to the artificial intelligence (AI) sector is simply a capital rotation and has not diminished Bitcoin’s value or undermined its solid foundation.
In a post on her X account, Saylor stated that capital markets are funding AI infrastructure on a historical scale, with approximately $400 billion utilized in the last six months.
Despite the influx of capital into the AI sector, approximately $4 billion has flowed out of spot Bitcoin ETFs since May 14th, putting downward pressure on Bitcoin and increasing volatility.
Finally, Saylor emphasized that this volatility creates opportunities.
“The capital market is funding AI on a historical scale… This is putting pressure on $BTC. This is a capital rotation, not a devaluation of Bitcoin. Volatility creates opportunities.”
