Bitcoin's worst weekly performance since July 2024 has wiped out $200 billion in market cap. The world's largest digital currency is hovering below $60,000, down 27% over the past month and more than 50% from its all-time high. However, diehard bitcoin purists, known as 'maxis,' are not sweating the sell-off.
Their argument: capital is rotating out of crypto and into artificial intelligence, creating a temporary liquidity crunch, not a fundamental bitcoin problem. Some point to a record-breaking streak of outflows from U.S. spot bitcoin ETFs, which suffered $3.45 billion in outflows over 11 consecutive sessions.
Market analyst Mati Greenspan clarified that bitcoin is not facing a bitcoin problem but a liquidity problem, with AI becoming the market's new obsession. Strategy Chairman Michael Saylor echoed this, calling the trend a capital rotation, not a bitcoin impairment.
Despite the downturn, some advocates, including Strike CEO Jack Mallers, are encouraging investors to buy the dip. However, Greenspan warned that a reversal may not be smooth, noting that if AI sentiment cracks, bitcoin could get hit twice: from liquidity leaving crypto and from a broader risk-off move across markets.