Bitcoin Slides Below $64K as Saylor Blames AI Rotation, Strategy Sits $11B Underwater

Bitcoin News

Strategy chairman Michael Saylor reframed the latest Bitcoin selloff as a capital rotation toward artificial intelligence infrastructure rather than a deterioration of the asset's fundamentals. Saylor pointed to roughly $4 billion in spot ETF outflows since May 14 and cited the unprecedented scale of AI capital expenditures — around $400 billion deployed across data centers and chips over six months — as the primary suction pulling money out of BTC. With Bitcoin trading near $64,000 and down almost 49% from its October 2025 record, Saylor argued the volatility creates accumulation opportunity rather than signaling structural weakness in the largest digital asset.

Strategy's own treasury position has slipped sharply into unrealized loss territory, with paper drawdowns now estimated above $11 billion. The firm holds 843,706 BTC acquired at an average cost near $75,700, valuing the stack at roughly $52.6 billion against a $63.8 billion cost basis. Strategy's variable-rate STRC preferred stock has slipped to about $94.6, beneath its $100 reference level, while MSTR shares traded down 1.5% premarket near $124.70. The pressure has been amplified by Strategy's June 1 disclosure that it sold 32 BTC for $2.5 million — its first divestment since 2022 — to cover preferred-stock dividend obligations.

Atlas Capital chief executive Reza Bundy, business partner of veteran skeptic Nouriel Roubini, issued a striking dual-horizon forecast at the Proof of Talk conference in Paris. Bundy projected Bitcoin could plunge as much as 70% over the next six months toward a $26,000–$30,000 zone, particularly if equity markets replay even a fraction of 2008's drawdown. Yet he framed the cycle as ultimately constructive, modeling a multi-year recovery to $500,000 per coin. Bundy argued Bitcoin has failed its inflation-hedge thesis and now trades as a leveraged tech-stock proxy, a view that diverges from bull market orthodoxy while still endorsing long-duration upside.

Technical analysts increasingly cite parallels between current price action and the 2022 cycle, with the $60,000 region emerging as the line bulls must defend. BTC/USD retested its 200-week simple moving average near recent lows after rejecting a bearish retest in the low $80,000s, mirroring textbook bear market structure. Order-book commentary highlights persistent supply walls on Binance perpetuals, where every relief bounce meets fresh seller aggression. The broader crypto market has shed more than $2 trillion in value since the October 2025 peak, underscoring how the breakdown extends well beyond Bitcoin's own technical damage.

A Michigan couple reportedly closed the first conventional, Fannie Mae-backed home mortgage collateralized by Bitcoin, executed through Coinbase and lender Better. The arrangement allows qualified borrowers to pledge BTC held on a centralized exchange as down-payment collateral without triggering capital-gains realization, while day-to-day price swings will not produce margin calls or forced liquidations. The product follows a policy reversal from FHFA director Bill Pulte instructing the mortgage watchdog to recognize crypto custodied on regulated exchanges. The offering will expand to qualified borrowers nationally in coming months and is expected to support USDC alongside Bitcoin as eligible collateral.

Wall Street coverage initiated on Bitcoin miners TeraWulf and Cipher Digital, framing the cohort as indispensable "power landlords" for the AI buildout. Mining operators have signed 17 deals worth more than $110 billion over the past two years, contracting roughly 6 gigawatts of capacity to Google, Amazon, Microsoft, Nvidia and CoreWeave — about 10% of all AI data centers under construction in the United States. Aggregate AI revenue across covered names is projected to rise ninefold from $1.2 billion this year to $10.7 billion by 2030. TeraWulf is modeled at $1.7 billion in AI revenue with 84% EBITDA margins, while Cipher Digital is projected at $1.2 billion with 93% margins.

Technically, BTC is pinned in a confirmed downtrend at $64,045 with a 24h drop of 2.39% and an RSI collapsed to 18.26 — a deeply oversold reading that historically precedes mean-reversion bounces yet often coincides with further capitulation when MACD remains bearish, as it does now. Immediate support sits at $62,910, with $61,382 and $59,912 marking the structural floor that aligns with the 200-week SMA cited by chartists. Resistance stacks at $63,831, $66,030 and $67,516. A reclaim of $66,030 on rising volume would invalidate the bearish thesis; conversely, a daily close beneath $59,912 opens the door to Bundy's deeper drawdown scenario.