Bitcoin has struggled to pull-up in recent weeks, even as institutional adoption continues to grow. While many investors are looking for reasons behind the slowdown, MicroStrategy Executive Chairman Michael Saylor points to an unexpected factor: artificial intelligence.
Speaking with Natalie Brunell, Saylor argued that the current wave of AI investment is temporarily pulling capital away from Bitcoin. However, he expects that trend to reverse before the end of the year.
The ‘AI Summer’ Effect
According to Saylor, Wall Street is currently focused on a series of massive AI-related fundraising rounds.
He highlighted companies such as OpenAI, Anthropic, Google, Meta, and SpaceX, which are investing heavily in AI infrastructure and data centers.
According to Saylor, these high-profile deals have become the hottest trade on Wall Street.
“Everybody wants to get into the deal. They want to flip the deal,” Saylor said.
As a result, money is being redirected from multiple asset classes, including Bitcoin. He estimated that around 1% to 2% of the capital flowing into AI investments is coming from Bitcoin-related allocations.
Why Michael Saylor Expects a Trend Reversal
Despite the short-term pressure, Saylor does not see the trend lasting forever. He explained that once these fundraising rounds are completed, many hedge funds and traders will likely take profits and move capital elsewhere. Some of that money, he expects, will find its way back into Bitcoin.
“Once the deals have gone through, the early hedge funds and traders, they’ll flip it and they’ll rotate back the other way,” Saylor said.
He also pointed out that investors who make significant gains from AI-related investments may eventually diversify their portfolios, creating another potential source of demand for Bitcoin.
A 12 to 24 Week Cycle?
Saylor views the current situation as part of a normal market cycle rather than a long-term shift away from digital assets.
He suggested that the AI-driven capital rotation could last anywhere from 12 to 24 weeks. While he does not expect an immediate turnaround, he believes the market could look very different by the end of 2026.
“I think toward the end of the year, we should see a reversal of the trend,” he said.
According to Saylor, investors ultimately follow opportunities rather than specific industries. Capital moves toward whatever is attracting the most attention and returns at a given time.