Michael Saylor Calls Bitcoin Sell-Off a 'Capital Rotation' to AI Amid Market Pressure

Strategy founder Michael Saylor characterized recent outflows from Bitcoin as a "capital rotation" rather than a devaluation, following a sell-off that pushed $BTC to $63,000 and $ETH to $1,770.

In a post on his X account, Saylor said capital markets are funding artificial intelligence infrastructure on a historical scale, with approximately $400 billion deployed in the last six months. He argued that the shift has placed pressure on Bitcoin but has not undermined its foundation.

Data from the period underscores the scale of the rotation. Approximately $4 billion has flowed out of spot Bitcoin ETFs since May 14th, contributing to downward pressure on $BTC and elevated volatility across the cryptocurrency market.

"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," Saylor wrote.

Saylor's remarks came as Bitcoin and altcoins extended a broader downward trend, with Ethereum falling to $1,770 alongside the move in $BTC. The episode marks a continued drawdown across major digital assets during a week marked by heightened volatility.