Bitcoin's slide to $67,000 could signal a turbulent summer as investors rotate out of crypto and into AI stocks, according to K33 Research.
Head of Research Vetle Lune says the opportunity cost of holding bitcoin while AI-related equities soar is now too high for many investors. The Nasdaq and S&P 500 continue to hit record highs, while bitcoin has failed to reclaim its 200-day moving average.
ETF outflows have accelerated, with spot bitcoin products losing 62,794 BTC over the past three weeks, the second-largest outflow streak on record. Institutional traders are reducing exposure, with CME bitcoin futures open interest falling to its lowest since October 2023.
K33 had previously argued February's plunge to $60,000 likely marked the cycle's deepest drawdown, but the firm now advises caution. While still viewing bitcoin as undervalued relative to equities over the long run, the report warns of a potential choppy summer ahead.