to leave a comment.
▲ Bitcoin (BTC) decline / AI generated image
As Bitcoin (BTC) wavered, giving up the $75,000 mark, funds flowed into the stock market driven by the artificial intelligence boom, and even the anticipation of pro-crypto regulations was delayed, causing investor sentiment to cool sharply.
According to Cointelegraph, a cryptocurrency specialized media outlet, on May 28 (local time), Bitcoin received resistance at the $78,000 level on Thursday and then deviated from its synchronized trend with traditional financial markets. While the tech-heavy Nasdaq 100 index hit an all-time high, Bitcoin fell below $75,000 the previous day, showing a clear temperature difference from the stock market.
Cointelegraph attributed Bitcoin's relative underperformance to the sale of Bitcoin holdings by listed mining companies and their transition to AI infrastructure businesses. TeraWulf recently announced the addition of 1 gigawatt of high-performance computing capacity in Kentucky. This was presented as an example showing the trend of mining companies shifting their focus from traditional Bitcoin mining to AI data infrastructure.
The movement of Bitcoin by Trump Media & Technology Group also put pressure on market sentiment. According to Lookonchain, the media company controlled by the family of US President Donald Trump transferred 2,650 BTC, worth approximately $205 million at the time, to a cryptocurrency exchange address on Friday. The company had previously accumulated 11,542 BTC at a unit price of over $118,500.
The delay in processing pro-crypto bills in the US Congress also fueled investor disappointment. The Digital Asset PARITY Act, which exempts mining and staking rewards from taxation until they are sold, has not had a hearing or vote scheduled since its official introduction in May. The Digital Asset Market CLARITY Act is also awaiting a vote in the Senate plenary session, but no official schedule has been confirmed. This bill aims to establish a market structure framework that divides digital asset oversight authority between the Commodity Futures Trading Commission and the US Securities and Exchange Commission, and complements the already passed stablecoin regulation law, GENIUS.
Liquidity expectations also weakened. Investors had expected the US Federal Reserve (Fed) to continue buying US Treasury bonds and further expand its balance sheet, but since April, the Fed's total assets have remained around $6.7 trillion. Cointelegraph saw rising oil prices as a factor that increased inflationary pressure and prompted the Fed's cautious response. During the same period, memory semiconductor companies such as SK Hynix and Micron surpassed a market capitalization of $1 trillion for the first time, and some major global assets surged by more than 20% in a week, leading to a concentration of investment demand in AI infrastructure.
*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.*
Newsletter
Get key news delivered to your email every morning
to leave a comment.