Bitcoin falls 22% as capital rotates to AI, Saylor says

Bitcoin has entered bear market territory following a steep decline in its price, a development that prominent cryptocurrency advocate Michael Saylor attributes to a temporary rotation of capital toward artificial intelligence infrastructure rather than a fundamental loss of faith in the digital asset. The price of Bitcoin fell to approximately $61,400 before recovering slightly, marking a decline of over 22% from its recent four-week high.

Saylor, the executive chairman of MicroStrategy, argued in a public statement that institutional capital is being redirected on a massive scale. He cited data indicating roughly $400 billion has been deployed into AI projects over the past six months, while U.S.-listed spot Bitcoin exchange-traded funds have seen approximately $4 billion in net outflows since mid-May. He characterized this as a capital rotation, not a structural impairment of Bitcoin, adding that volatility creates opportunity.

This explanation arrives amid heightened market sensitivity. MicroStrategy, which holds the world's largest corporate Bitcoin treasury at 843,706 BTC, recently sold 32 of those coins to fund dividend payments on its preferred stock. While the sale was...