Will Bitcoin Create Another 'Lower High'? What's the Reason for the Surge in AI Coins Only?

▲ Bitcoin (BTC) ©Coinreaders

Despite the strong performance of the US stock market, Bitcoin (BTC) is struggling to regain upward momentum, leading to growing warnings of another 'lower high' in the market. In contrast, AI-themed coins have seen a concentration of funds, maintaining a strong independent rally even amid market weakness.

According to investment media FXStreet on May 26 (local time), Bitcoin is currently trading around $76,600, having fallen approximately 7% over the past two weeks. Although it briefly rebounded to $77,800 the previous day, the upward trend did not last long. The media analyzed that Bitcoin is likely to form another 'lower high' within the bearish structure that has continued since last October.

What's interesting is that this weakness contradicts the trend in the US stock market. During the same period, S&P500 futures and Nasdaq100 futures rose by more than 0.5%. This suggests that the recent sluggishness in the cryptocurrency market is more closely related to crypto-specific supply and demand and investor sentiment issues rather than macroeconomic factors. Ethereum (ETH) also fell to around $2,098, dropping more than 10% over the past two weeks.

In contrast, AI-themed coins maintained a strong upward trend despite market weakness. The CoinDesk Computing Select Index rose by 1.9%, with Render (RENDER) and Fetch.ai (FET) leading the gains. Notably, Near Protocol (NEAR) surged 58% in the week leading up to May 24, followed by an additional 14% increase, reaching $2.82. The media analyzed that expectations for upgrades related to dynamic scalability, privacy, and quantum defense were behind the rise.

A shift of funds towards AI coins was also observed in the derivatives market. Near Protocol's futures open interest surged from 182 million a week ago to a current all-time high of 309 million. Furthermore, NEAR showed the strongest 24-hour Cumulative Volume Delta (CVD) among major tokens, indicating that market buy orders are driving price increases. In contrast, Bitcoin's futures open interest has decreased from 793,000 BTC at the beginning of this month to 711,000 BTC, signaling a cooling of market enthusiasm.

The overall market sentiment remains limited. Cryptocurrency futures trading volume decreased by 10% over 24 hours to $130 billion, and liquidation volume also dropped by 21% to $126 million. However, in the options market, bearish bets still prevail. According to Deribit, the most actively traded product recently was Bitcoin put options (sell options) in the $70,000-$76,000 range, which is interpreted as investors preparing for further downside potential.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*