Despite Bitcoin plunging nearly 17% in a single week—its worst performance since July 2024—and wiping out approximately $200 billion in market capitalization, the cryptocurrency's loyalists remain steadfast in their belief in its future. The leading digital asset's price has dipped below $60,000, marking a 27% decline over the past month and more than a 50% drop from the all-time high set on October 6, 2025.
Why the "Maximalists" Remain Unfazed
Bitcoin supporters, often referred to as bitcoin maximalists (or "maxis"), are convinced that Bitcoin is the only cryptocurrency capable of achieving global success and maintaining long-term monetary relevance. They argue that the current struggle isn't a "Bitcoin problem," but rather a symptom of capital migrating toward artificial intelligence (AI). In their view, the temporary liquidity crunch is being driven by speculative hype surrounding AI rather than a fundamental loss of faith in Bitcoin.
Capital Shifts from Crypto to AI
This massive exodus of funds coincided with a record-breaking streak of outflows from U.S. spot Bitcoin ETFs, where investors withdrew $3.45 billion over 11 days. Meanwhile, tech stocks continue to soar, with the Nasdaq index rising 34% over the past year and the S&P 500 up nearly 24%. This trend has heightened anxiety among crypto investors, who perceive Bitcoin to be increasingly undervalued.
Matty Greenspan, a market analyst, Bitcoin maximalist, and founder of Quantum Economics, explains the situation as follows:
"Bitcoin doesn't have a Bitcoin problem. It has a liquidity problem. AI has become the market's new obsession, but obsessions eventually fade."
Michael Saylor, chairman of Strategy (MSTR)—the largest public corporate holder of Bitcoin—echoed this sentiment on X:
"Capital markets are funding AI development on an unprecedented scale, with roughly $400 billion deployed in six months. Bitcoin ETFs have seen about $4 billion in outflows since May 14, which is weighing on BTC. This is a reallocation of capital, not a deterioration of Bitcoin’s fundamentals. Volatility creates opportunity."
Why Liquidity Is Flocking to AI
Greenspan points to the upcoming Anthropic IPO, with a valuation nearing $1 trillion, as a clear signal of where liquidity is heading. Traditional capital pools are currently chasing AI infrastructure, data centers, and multi-billion-dollar private investment rounds. Three highly anticipated IPOs—OpenAI, Anthropic, and SpaceX—could collectively raise over $200 billion, further diverting capital away from crypto assets.
AI Isn't the Only Factor Weighing on Bitcoin
Not everyone attributes Bitcoin’s lackluster performance solely to AI. Jason Fernandes, a Bitcoin maximalist and co-founder of AdLunam, notes a confluence of pressures:
"BTC is currently under attack from all sides: ETF outflows, high interest rates, rising inflation, capital rotation into hot tech stocks, macroeconomic uncertainty, and the psychological shock of Saylor's company selling Bitcoin after years of preaching 'never sell.'"
In late May, Strategy sold 32 Bitcoins for $2.5 million—its first sale in four years—to fund dividend payments for its STRC (Stretch) perpetual preferred stock. While critics characterized this as a blow to investor confidence, Greenspan and other analysts dismiss the panic as unfounded:
"Selling 32 BTC against a balance of over 843,000 BTC isn't even a rounding error."
A Buying Opportunity?
Despite the outflows, some maximalists believe now may be the time to buy more of the undervalued asset, as Bitcoin's long-term fundamentals remain intact. Greenspan suggests that the recent record outflows from Bitcoin funds are merely part of a cycle of capital rotating back into monetary assets. This current consolidation phase could become an accumulation zone if the network's underlying performance stays strong.
Jack Mallers, CEO of Strike, is urging investors to ignore the market noise and simply buy the dip.
A Bottom Is Not Yet Guaranteed
However, a return of capital to the crypto market is not guaranteed, and it certainly won't be seamless. Even if Bitcoin’s current weakness is partly due to the shift toward AI, a cooling of that trend may not immediately provide relief to the crypto sector. Greenspan warns:
"If market sentiment regarding AI wavers, Bitcoin could face a double whammy: first from the initial liquidity drain, and then from a general 'risk-off' shift across markets. It is premature to assume the bottom has already been reached."
