Bitcoin price has been struggling to reclaim the $100,000 level. It recently slipped below $60,000, leaving many investors wondering why the world’s largest cryptocurrency continues to underperform. This is despite growing institutional adoption.
While concerns over macro uncertainty and market volatility remain, Strategy Executive Chairman Michael Saylor said that Bitcoin’s weakness has a much simpler explanation. He said capital is temporarily flowing elsewhere.
Capital Is Being Pulled Into These Hot Deals
Saylor said Wall Street’s attention has shifted toward artificial intelligence investments like SpaceX, Anthropic, Nvidia, and Google. Investors are rotating money into new IPOs and fast-growing tech companies.
“Capital is being pulled into all these hot deals. When IPO summer and AI summer pass, that money will come back to Bitcoin.” he added that investors are not maximalists… they move from one asset to another based on relative value.
According to him, Bitcoin isn’t losing value because of weak fundamentals. Instead, investors are chasing short-term gains in AI-related opportunities before eventually returning to crypto.
Bitcoin Is Now Undervalued
Saylor argues that Bitcoin usually trades at a premium during bull markets but becomes attractive when leverage leaves the market.
“The more capital drains out of Bitcoin, the more compelling the price becomes. Bitcoin is now undervalued.” He said.
He expects capital currently sitting in AI investments to gradually rotate back into Bitcoin during the third quarter. Additionally, he believes conditions will improve further by the fourth quarter of 2026.
We’ve Lived Through More Brutal Drawdowns
“We’ve lived through more brutal drawdowns. A few months of price action doesn’t change the long-term thesis.” he said,
Saylor pointed out that since Strategy began buying Bitcoin in August 2020, the company has already experienced five major drawdowns. The current decline of around 50% is painful but still smaller than the 75% crash during the 2021-2022 bear market.
For him, large corrections are simply part of Bitcoin’s long-term journey.
According to him, investors should ignore short-term volatility and instead focus on long-term indicators like the 200-week moving average. He recommends maintaining at least a four-year investment horizon.
On the other side, Strategy’s preferred stock, STRC, recently fell to a record low of around $71. Its common shares dropped 25% over the week to their lowest level since February 2024. This reflects broader investor caution as money rotates into AI and IPO opportunities.
Bitcoin Whales Keep Buying
While retail sentiment remains cautious, on-chain data suggests large investors are becoming more active.
According to Santiment, Bitcoin recently recorded its second-largest whale transaction spike in the past two months after briefly falling below $60,000. The network logged 6,920 transactions worth over $100,000 and 1,438 transactions exceeding $1 million.
Historically, similar whale activity has often appeared during periods of fear, suggesting institutional investors may already be accumulating while the broader market remains cautious. For Saylor, that reinforces his belief that Bitcoin’s current weakness is temporary. He does not see it as a sign that its long-term story has changed.
