The selling of 32 bitcoins shatters market beliefs! Strategy reducing holdings intensifies the deviation between cryptocurrencies and tech stocks, leading to a major migration of "smart money" into AI infrastructure.

Notice that the selling wave of Bitcoin continued until Wednesday. Earlier, Strategy company (MSTR.US) sold a small part of its massive cryptocurrency reserves, triggering market panic and exacerbating the division between Bitcoin and record-breaking tech stocks. On Wednesday, the largest cryptocurrency once dropped to $65,391, exacerbating this week's decline, with its market value evaporating by about $160 billion this week. As of the time of writing, Bitcoin fell by 4.09% to $66,965. This round of decline started earlier this week when Strategy company sold about $2.5 million worth of Bitcoin from its over $60 billion holdings. Loss of Faith A recent landmark event in the market has pricked the bubble of cryptocurrency faith. The long-term crypto giant Strategy, which has always adhered to the "never sell" strategy, only sold 32 Bitcoins from its massive $60 billion reserves (worth about $2.5 million). Financially insignificant, but psychologically devastating to the crypto market. Rajiv Sony, Managing Director of Wave Digital Assets International Portfolio Management, mentioned that this sale is insignificant from almost any financial perspective - selling only 32 tokens out of its massive 843,706 tokens in holdings. But it broke the market's firm belief in Strategy's Chairman Michael Saylor's longstanding "never sell" stance. Saylor published in 2025 that he would never sell Bitcoin. "Strategy's sale of 32 Bitcoin for $2.5 million is financially insignificant, just a rounding error compared to its $62 billion holding," Sony said. "But given Bitcoin's poor performance in recent weeks, the signal it sends to the market is more important." The market suddenly realized that when even the most staunch advocates of crypto assets begin to cut positions, the narrative logic of supporting virtual assets by "only buying, not selling, infinite inflation" has been shaken. At the same time, the relationship between Bitcoin and tech stocks has completely decoupled after market volatility in the fourth quarter of last year. In the past 12 months, the Nasdaq 100 index has soared over 40% driven by the AI market, while Bitcoin has dropped nearly half from its peak. This deviation proves that funds no longer perceive cryptocurrencies as an alternative to tech stocks, but rather categorize them as high-risk assets lacking intrinsic cash flow. Bitcoin is no longer the "high beta proxy" for tech stocks. Bitcoin's weakness is in stark contrast to the stock market's recent surge. The Nasdaq 100 index hit a historic high on Tuesday, highlighting the growing divergence between the first-generation cryptocurrency and tech stocks. Many investors had previously seen Bitcoin as a high-beta (high elasticity) barometer for tech stocks, but this relationship has weakened since the market crash in October last year. As AI concept stocks continue to attract capital, this fund rotation becomes more apparent. In the past 12 months, the Nasdaq 100 index has risen by 41.5%, while Bitcoin has fallen by 37%, and it is 48% lower than last year's peak. The decoupling of Bitcoin and tech stocks' performances further expands. Klany Mai, a partner at FXHB Asset Management, said, "We have partially moved capital from Bitcoin and digital assets to AI stocks," "Compared to digital assets, AI currently offers a more attractive risk-return ratio, leading some investors to readjust their asset portfolios." Mai pointed out that cryptocurrencies currently lack strong short-term catalysts, and their performance is increasingly showing characteristics of range volatility, relying more and more on liquidity and macroeconomic conditions. He also mentioned that some IPO plans related to cryptocurrencies have been delayed, while AI companies continue to attract investor demand and market momentum. Big Migration of Funds: "Smart Money" is flowing from Cryptocurrency to AI Infrastructure Funds are visibly withdrawing from cryptocurrencies at a rapid pace and pouring into AI infrastructure. This round of reallocation is not an abstract "capital flight," but very specific corporate actions: capital is more willing to stand on the side with visible cash flow, long-term contracts, and significant asset depreciation. A signal case is K Wave Media: the company redirected the remaining about $485 million in funding originally used for "Bitcoin treasury/reserve strategy" to AI infrastructure - data centers, GPU power, and related acquisitions, and simultaneously promoted business restructuring and deleveraging. Essentially, it changed from "holding for appreciation" to "investing in production capacity for income." A harder clue comes from the miners: Bitdeer cleared the company's stored Bitcoins under financial report/operational update calibers (sold both original reserves and newly mined coins) and more clearly directed resources and funding towards AI and high-performance computing (HPC) infrastructure expansion. When even miners are shifting from "hoarding coins" to "selling coins to build IDC," the implications are simple: computing power must be monetized by relying on more stable customers and contracts, rather than gambling in the market. These cases are not isolated incidents but a miniature of the portfolio adjustments made by global institutional investors. For capital, AI infrastructure (such as GPU power chips, liquid-cooled data centers, electric grid electrification) offers the "pickaxe in the gold rush" - regardless of which AI big model comes out on top, the demand for computing power and energy is rigid. This highly convincing risk-return ratio is far more appealing than virtual tokens hanging in the air. William Quigley, co-founder of Tether, pointed out that the high returns of AI and semiconductor companies are leading investments away from the cryptocurrency field. Unlike the skepticism faced by internet companies in the 1990s, now there is a massive influx of institutional capital into AI infrastructure, showing strong market interest. Rick Rieder, Chief Investment Officer of Global Fixed Income at BlackRock, bluntly stated that the "easy phase" of the AI boom has ended, and capital is shifting out of overcrowded mega-cap tech stocks in search of pricing power and disruptive creation for the next wave of returns. UBS and hedge fund manager Daniel Loeb echoed this view. Significant ETF Outflows As funds are drawn by the AI magnet, the cryptocurrency market has to face unprecedented "bloodletting" pains. This pressure is also evident in fund flows and derivative markets. Data shows that in the past 12 trading days, investors have withdrawn nearly $4 billion from Bitcoin exchange-traded funds (ETFs) listed in the United States, setting a record for the longest continuous net outflow in history. Coinglass data shows that long positions worth about $1.6 billion in cryptocurrency perpetual contracts were liquidated within the past 24 hours. For a market built partially on the belief that "whales will continue to hoard coins," Strategy's somewhat small reduction has received excessive attention. The current concern is whether the disclosure of this news has already changed the core psychological faith supporting the token. Moreover, there are concerns that the pressure faced by Strategy may not be limited to its own stock price. The company's stock has already fallen by 14% this week, more than 70% from its peak. Pratik Kara, Portfolio Manager of the crypto hedge fund Apollo Crypto, said that if investors start to question the sustainability of the company's hoarding strategy, leveraged and yield-based funds linked to Strategy's stock (including MSTU, MSTY, and MSTX) could face intensified volatility. Since many of these financial instruments are designed to amplify Strategy's stock's daily fluctuations, even a slight decline in confidence could lead to massive losses and force asset restructuring. "This is a vicious cycle," Kara said. "The fall of MSTR is impacting ETFs built around it, including MSTY, MSTU, and MSTX. As losses intensify, investors are pulling funds from these funds, further impacting the market sentiment around the entire MSTR-related transactions."