Michael Saylor Blames AI Buildout for Bitcoin's Recent Decline Amid ETF Outflows
In brief
Michael Saylor pointed to the unprecedented AI buildout as a reason for Bitcoin's recent decline.
The Strategy chairman highlighted more than $4 billion in ETF outflows as proof of capital rotation.
Bitcoin has fallen alongside MSTR shares, dipping 22% and 30% respectively over the last month.
Strategy co-founder and chairman Michael Saylor said the flight of capital into artificial intelligence is responsible for the volatility dragging down Bitcoin—even as some point the finger at his company's own recent BTC sale.
The top crypto asset has dropped 3.7% in the last 24 hours, recently changing hands at $63,429. Over the last week, Bitcoin has fallen more than 13%, dipping as low as $61,559 late Wednesday—down more than half from its all-time high set in October 2025.
"Capital markets are funding the AI buildout at historic scale," Saylor posted on X. "This is a capital rotation, not a Bitcoin impairment. Volatility creates opportunity."
The outspoken Bitcoin bull highlighted significant BTC ETF outflows since May 14—more than $4.3 billion worth, according to data from Farside—as evidence of the rotation that is dragging down his firm’s principal treasury asset.
The ETFs, typically seen as an indicator of investor demand in Bitcoin, have not had a day of positive inflows since May 13, when they brought in around $131 million.
As a result of the growing outflows, the exchange-traded products have now registered negative flows on the year, a sign that investors may be seeking better returns elsewhere.
It's not just the ETFs dragging down Bitcoin, though.
Saylor’s own firm offloaded a small portion of its more than $53.8 billion Bitcoin last week, selling 32 BTC for $2.5 million. Though the amount was miniscule relative to its large portfolio, analysts had previously told Decrypt that any sale could trigger a perception shift and weakening conviction in BTC.
Additionally, macroeconomic uncertainty caused by continued geopolitical risks and concerns of inflated energy prices in the near future are impacting the demand for risk assets.
The entire crypto market cap has slid more than 3.1% in the last 24 hours to $2.29 trillion, according to data from CoinGecko, leading to $1.74 billion in liquidations during the span. Bitcoin longs, or trades betting on the price to go up, have accounted for $635 million per CoinGlass.
Shares in the firm (MSTR) have fallen alongside Bitcoin, dipping 15% in the last five trading days to change hands around $128. Meanwhile, STRC, its preferred stock offering that has helped fuel its Bitcoin purchases of late, has dipped well below its par marker of $100, recently changing hands at $95.35.
