Michael Saylor says the ongoing decline in Bitcoin’s (CRYPTO: $BTC) price is due to capital rotation into stocks of companies engaged in artificial intelligence (A.I.) infrastructure.
The executive chairman of Bitcoin treasury company Strategy (NASDAQ: $MSTR) wrote on social media platform X thatinvestors are flocking to A.I. stocks at a historic pace and abandoning cryptocurrencies as a result.
He added that institutions are pulling money out of Bitcoin and deploying it to A.I. infrastructure, where $400 billion U.S. has gone in the last six months, leading to price weakness in BTC.
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However, Saylor said that he remains bullish on Bitcoin, writing that “volatility creates opportunity.”
Strategy remains the largest holder of Bitcoin in the world, with 843,706 BTC that’s currently worth approximately $53 billion U.S.
Saylor took to social media after his company last week sold 32 Bitcoin for proceeds of $2.5 million U.S. It was the company’s first BTC sale in four years and has rattled many investors.
Analysts have criticized Strategy’s recent Bitcoin sale, saying it has worsened bearish sentiment and accelerated the current selloff in cryptocurrencies.
Bitcoin’s price has declined 12% so far this week and is currently trading at $63,500 U.S.
