Bitcoin Price Plunges as Investors Flock to Stocks and AI

Bitcoin's price dropped over 25% in May and early June as investors rotated into stocks and AI-related assets. According to data from Glassnode, this divergence underscores how capital has flowed out of Bitcoin and into other risk assets at a time when demand for the cryptocurrency weakened.

The decline came as concerns about inflation and the economic effects of escalating conflict in the Middle East weighed on consumers. At the same time, US equities moved in the opposite direction, with the S&P 500 closing at a fresh record high of 7,580.06 on May 29.

Bitcoin followed a markedly different path, falling from around $83,000 to approximately $60,000 during the same period. US spot Bitcoin ETFs recorded 13 consecutive days of net outflows in May, with total outflows reaching approximately $4.4 billion.