Why devoted bitcoin supporters aren’t concerned about the significant price drop that erased $200 billion. Mati Greenspan, Michael Saylor, and Jameson Lopp attribute the capital drain from bitcoin to the AI surge. Meanwhile, Jack Mallers offered no predictions but suggested taking advantage of the price drop.

What to know:

— Bitcoin advocates contend that the recent price decline is a momentary liquidity issue driven by speculative investments shifting towards artificial intelligence, rather than a decline in trust in the cryptocurrency.

— Experts highlight unprecedented outflows from U.S. spot bitcoin ETFs, rising AI stocks, and significant AI fundraising as proof that traditional liquidity is pursuing tech infrastructure over crypto.

— Critics argue that bitcoin is under broader macroeconomic pressures, including elevated interest rates, ETF outflows, and diminished confidence following Strategy’s minor BTC sale, while supporters view the current dip as a possible accumulation opportunity if network fundamentals remain strong.

Hardcore bitcoin supporters have not lost confidence in the leading digital currency, even as it has declined nearly 17%, representing its worst weekly performance since July 2024 and erasing about $200 billion in market cap over the past week.

The leading bitcoin proponents, or maximalists (shortened to maxis) — a group convinced that bitcoin is the sole cryptocurrency likely to achieve sustainable global adoption and monetary significance — assert that capital is being redirected from crypto to artificial intelligence, resulting in what they perceive as a temporary liquidity issue rather than a fundamental problem with bitcoin.

This viewpoint arises as the largest cryptocurrency is currently trading below $60,000, down about 27% in the last month and over 50% from its all-time high of Oct. 6, based on Decryptnews data.

The capital exodus coincided with a record-setting streak for U.S. spot bitcoin ETFs, which experienced $3.45 billion in outflows over 11 consecutive sessions. While the crypto market is struggling, Wall Street’s enthusiasm for technology remains strong. Even after the recent downturn, AI-related stocks continue to be among the top market performers. The Nasdaq has increased by 34%, and the S&P 500 has risen nearly 24% in the past year, creating anxiety among crypto investors seeking explanations for bitcoin’s lagging performance.

While some market analysts interpret the decline as a loss of structural confidence, bitcoin maxis argue that the downturn merely reflects speculative capital shifting significantly towards AI.

According to Mati Greenspan, a market analyst, bitcoin maximalist, and founder of Quantum Economics, the decline in bitcoin’s price is not due to a lack of investor faith, but rather because AI has emerged as the preferred destination for speculative funds.

«Bitcoin isn’t facing a bitcoin issue. It’s facing a liquidity issue,» Greenspan told Decryptnews in a recent interview. «AI has become the market’s new fixation, but such fixations tend to fade.»

Another notable bitcoin maxi, Michael Saylor, whose recent bitcoin sales have sparked debate about their impact on the current crash, echoed Greenspan’s views on X.

“Capital markets are financing the AI expansion at an unprecedented scale: ~$400B over six months,” Saylor stated. Bitcoin ETFs have faced ~$4B in outflows since May 14, putting pressure on BTC. This is a capital shift, not a bitcoin failure. Volatility presents opportunities.”

‘Identifying the root cause’

Greenspan pointed to the Anthropic $50 billion IPO, which aims for a nearly $1 trillion valuation, as a clear indicator of where market liquidity may have moved.

While bitcoin supporters highlight the asset’s historical long-term returns, traditional liquidity sources are currently pursuing AI infrastructure, data centers, and multi-billion-dollar private funding rounds, according to Greenspan.

Indeed, the expected IPOs of OpenAI, Anthropic, and SpaceX, which together could generate over $200 billion, might be attracting investor focus and capital toward AI and technology ventures, sidelining other speculative assets, including crypto.

Bitcoin core developer and maximalist Jameson Lopp suggested that investor frustration during market declines often drives the search for straightforward explanations. “I suspect the root cause is the bear market, coupled with traditional financial markets experiencing an AI boom,” Lopp remarked on X.

However, not everyone attributes bitcoin’s weakness primarily to AI. Market data indicates that the pressures on crypto are complex, and detractors argue that solely blaming AI simplifies a fragile macroeconomic landscape. Jason Fernandes, a bitcoin maxi, market analyst, and co-founder of AdLunam, told Decryptnews that the asset is facing challenges from multiple directions.

“BTC is under attack from all sides at the moment,” Fernandes noted. “ETF outflows, high interest rates, rising inflation, money shifting back to hot tech stocks, macroeconomic uncertainty, and now the psychological impact of Michael Saylor’s Strategy selling BTC after years of advocating ‘never sell.’”

Strategy, the largest publicly traded corporate holder of bitcoin, faced significant backlash on social media after selling 32 bitcoins for $2.5 million in late May—its first sale in four years—to finance dividend payments on STRC, its perpetual preferred stock known as Stretch.

Although critics argued that this action «damaged confidence,» Greenspan, like many analysts, dismissed the panic. «Selling 32 BTC from a balance sheet of over 843,000 BTC is not even a minor detail,» Greenspan remarked.

Is it time to invest?

Despite the outflows, some maximalists argue it might be a good time to invest in the underperforming asset as bitcoin’s long-term fundamentals remain intact.

Greenspan suggested that the recent record outflows from bitcoin funds may be part of a shift back toward monetary assets. He added that bitcoin’s current consolidation phase could represent an accumulation opportunity if the underlying network fundamentals remain solid. Despite the price drop, institutional adoption, regulatory frameworks, and discussions about bitcoin as a strategic reserve asset have continued to evolve positively over the past few years.

Meanwhile, other bitcoin proponents, like Strike CEO Jack Mallers, are skipping broader market discussions and urging investors to take advantage of the price dip on social media.

However, a return to crypto is unlikely to be seamless. Even if bitcoin’s weakness partly results from capital moving into AI, Greenspan cautions that a reversal may not quickly benefit crypto and could result in a double blow.

“If AI sentiment falters, bitcoin could be impacted twice: first from liquidity exiting crypto, and then again from a broader risk-off trend across markets,” Greenspan stated.

“As for what lies ahead, I would be cautious in assuming the bottom has already been reached,” Greenspan advised.