Key Takeaways:
Bitcoin fell 4 percent to $67,200 at 14:30 UTC Tuesday, extending a two-week 12 percent slide, as NEAR Protocol, Internet Computer and Render posted double-digit gains in a rotation toward AI tokens.
Digital asset investment products saw $1.67 billion in outflows last week, the third straight negative week and the second-largest weekly outflow of 2026, according to CoinShares data. The three-week outflow total reached $4.21 billion, erasing gains from a six-week inflow streak that ended in mid-May.
Bitcoin spot ETFs have seen $2.26 billion exit since May 14, wiping out most of 2026's net accumulation, which has dropped to just 4,500 BTC, per CoinShares. Over the same two-week period, NEAR Protocol gained 18 percent, Internet Computer rose 14 percent and Render added 12 percent, CoinGecko data shows.
The $67,000 level now serves as immediate support, with a break below exposing the $65,000 zone last tested in April. The rotation into AI tokens reflects a broader market recalibration as traders reduce Bitcoin exposure while persistent ETF outflows and macro uncertainty weigh on prices.
$2.26 Billion in ETF Outflows Wipes Out 2026 Accumulation
The $1.29 billion block trade in BlackRock's iShares Bitcoin Trust on May 26 — the largest single trade in IBIT's 15-month history — was absorbed without triggering a market crash, according to Alex Thorn, head of research at Galaxy Digital. The trade, executed before market open through a dark pool, highlighted the depth of institutional market infrastructure, Thorn said.
Bitcoin's decline accelerated after the $70,000 support level broke on Monday. Strategy (MSTR) shares fell 10 percent to $135, while Coinbase (COIN) dropped 6 percent to $172, reflecting the direct beta both stocks carry to spot Bitcoin. Mizuho cut its MSTR price target to $265 from $320 while maintaining an Outperform rating.
The selloff was compounded by Strategy's first Bitcoin sale since December 2022 — 32 BTC sold for approximately $2.5 million, less than 0.004 percent of its 843,706 BTC holdings. Polymarket data prices the probability of an MSTR margin call in 2026 at just 5 percent, limiting the structural forced-selling thesis. Reddit chatter on Strategy stock stayed bearish through the overnight session, with the WallStreetBets thread "MSTR sold 32 BTC — more to come?" climbing to 447 upvotes by Tuesday morning.
AI Tokens Draw 12-18% Gains as Capital Rotates
The rotation into AI-focused tokens accelerated as Bitcoin's weakness pushed traders toward alternative sectors. NEAR Protocol led the group with an 18 percent gain over two weeks, followed by Internet Computer at 14 percent and Render at 12 percent, CoinGecko data shows.
The divergence marks one of the clearest sector rotations in crypto markets this year, with AI tokens benefiting from sustained interest in artificial intelligence infrastructure while Bitcoin faces headwinds from ETF outflows and macro uncertainty. The rotation could drive further capital inflows into AI-focused crypto projects in the near term, while Bitcoin may face continued selling pressure if ETF outflows persist.
Bitcoin's next test comes at the $65,000 support level, a zone that held during the April selloff. A break below that level would open the path toward $60,000, while a recovery above $70,000 would signal a potential reversal of the current rotation trend.
This article is for informational purposes only and does not constitute investment advice.
