Bitcoin’s star fades as investors flock to lustre of AI and megacap IPOs
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- Bitcoin fell about 15% this week, its steepest drop since November 2022, and is trading near $63,000, a roughly 33% loss for 2026 so far.
- Michael Saylor’s Strategy, the largest corporate Bitcoin holder, sold part of its Bitcoin holdings for the first time since 2022.
- Deribit’s DVOL index for Bitcoin options implied volatility is currently around 47, its highest level since early April, but close to a record low of 31 in late May.
- Bitcoin’s market share of the total crypto market fell to 56% from 63% a year ago, while rival coins and stablecoins now hold a larger slice.
- Mark Dowding, RBC BlueBay Asset Management CIO, said Bitcoin has moved from being “the flavor of the month” to “out of fashion” as capital drifts to AI stocks and megacap IPOs.
Why it matters: Institutional investors reallocate capital from Bitcoin to AI equities and upcoming megacap IPOs, boosting those sectors while Bitcoin’s price and market share slump, eroding returns for holders like Michael Saylor’s Strategy.
