Key facts
- Bitcoin price is trading near $65,000, down 12% in seven days.
- Spot Bitcoin ETFs have seen outflows of 62,794 BTC over three weeks.
- Investor capital is reportedly moving towards AI stocks and potential IPOs.
- CME bitcoin futures open interest has dropped to its lowest level since October 2023.
- High-conviction Bitcoin holders have sold approximately $2.4 billion in the past two days.
- MicroStrategy sold 32 BTC for tax optimization.
Bitcoin is trading near $65,000, down approximately 12% over the past seven days, as investor capital rotates towards AI stocks and anticipated IPOs from companies like SpaceX, OpenAI, and Anthropic. This shift is contributing to outflows from spot Bitcoin ETFs, which have seen their second-largest three-week streak of outflows, shedding 62,794 BTC. K33 Research suggests that the high opportunity cost of holding Bitcoin while AI stocks perform strongly, combined with increased derivatives leverage, could lead to further price declines. CME bitcoin futures open interest has fallen to its lowest point since October 2023, indicating reduced institutional interest. High-conviction holders have sold about $2.4 billion in Bitcoin over the last two days. MicroStrategy's sale of 32 BTC for approximately $2.5 million for tax optimization also contributed to market jitters, though the company maintains its long-term strategy. Citi analysts estimate that spot Bitcoin ETF flows account for roughly 45% of weekly BTC price variation, and these flows have turned negative. The diminishing prospects for a U.S. crypto market structure bill are also cited as a factor contributing to muted sentiment. Technically, Bitcoin broke below key swing areas between $73,211 and $73,825, and its rising 100-day moving average. It fell to a low of $65,362 today, nearing the March 26 swing low at $64,955. A break below this level could lead to a move towards the February low at $59,957, potentially strengthening the longer-term bearish outlook.