The cryptocurrency market is under significant pressure, extending Bitcoin’s downward trend and highlighting one of the strongest divergences between digital assets and traditional equity markets in recent months. Investors are increasingly reallocating capital toward artificial intelligence and US technology equities.
Bitcoin continued its decline, briefly falling toward the $65,000 area, deepening weekly losses and erasing roughly $160 billion in total market capitalization. Selling pressure intensified following reports that Strategy sold a small portion of its Bitcoin holdings, previously viewed as one of the most stable corporate accumulation strategies in the market.
Although the transaction was relatively minor in size, the symbolic impact of partial selling by a major holder triggered a shift in market sentiment. Investors began reassessing confidence in long-term accumulation strategies, increasing volatility and accelerating downside momentum.
Additional pressure comes from record outflows in US-listed Bitcoin exchange-traded funds. Investors have withdrawn billions over recent trading sessions, marking one of the longest sustained outflow streaks on record. This has further weakened liquidity conditions in the spot market.
At the same time, traditional equity markets continue to outperform crypto assets. The Nasdaq 100 remains near record highs, driven by strong performance in artificial intelligence-related companies. This has created a widening gap between equities and cryptocurrencies, which were previously seen as highly correlated.
Several institutional investors are now openly shifting capital away from digital assets and into AI infrastructure, data centers, and high-growth technology companies, where returns appear more stable and predictable.
Market sentiment was further influenced by renewed bearish commentary from well-known skeptics. Peter Schiff reiterated his forecast that Bitcoin could first break below $50,000 and eventually fall toward $20,000. While such predictions are controversial within the crypto community, they tend to amplify negative sentiment during bearish cycles.
From a technical perspective, Bitcoin is approaching key demand zones, particularly in the $64,000–$66,000 range, where buyers have previously shown interest. However, no clear reversal structure has yet been confirmed.
Overall, Bitcoin remains pressured by institutional outflows, capital rotation into AI sectors, rising volatility, and weakening sentiment, keeping the possibility of a deeper correction actively discussed among market participants.
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