Bitcoin suffered its sharpest drop in 10 years, with funds flowing out into AI and IPO stocks, dragging cryptocurrencies down 33%.

Bitcoin is facing its worst year since 2015, with its price plummeting more than 33% since the beginning of the year. This has been driven by investors shifting funds into AI stocks and the IPOs of leading tech companies like SpaceX, resulting in record outflows to Bitcoin ETFs.

On June 6, 2026, at 1:52 PM, Reuters reported that: Bitcoin is facing its worst year in at least 10 years. When measuring performance over the same period of the year, investment flowed out of the crypto market into the booming artificial intelligence (AI) stock market, as well as initial public offerings (IPOs) of major technology companies such as SpaceX, which attracted global investor interest.

Bitcoin's price has plummeted by about 15% this week, its sharpest weekly drop since November 2565, when the FTX crypto trading platform went bankrupt.

Bitcoin is currently trading around $63,000, down approximately 33% since the beginning of 2569, the sharpest yearly drop since 2558, according to LSEG.

Further pressure arose when Strategy (formerly MicroStrategy), the world's largest publicly traded Bitcoin holding, revealed on Monday that it had sold some of its Bitcoin for the first time since 2565.

Mark Dowding, Chief Fixed Income Officer at RBC BlueBay Asset Management, said that Bitcoin is a clear example of an asset that was once extremely popular but is rapidly facing a “decline.”

Is the appeal of Bitcoin waning?

Bitcoin surged to an all-time high above $125,000 late last year amid hopes that President Donald Trump's pro-crypto policies would help propel the United States into becoming a global cryptocurrency hub.

However, Bitcoin is currently worth about 40% less than its level when Trump took office in January 2568.

Analysts believe that the increased role of large financial institutions, investment banks, and ETFs in the market has diminished Bitcoin's original unique selling point as an alternative asset that exhibits different volatility from conventional financial markets.

Historically, Bitcoin has often moved independently of the U.S. stock market, but over the past six years, the price of Bitcoin and the S&P 500 index have tended to move in the same direction more frequently.

Recently, this relationship has taken a sharp turn negative, with AI stocks surging while Bitcoin has weakened significantly.

Market share is being contested by stablecoins and altcoins.

Another factor pressuring Bitcoin is the competition within the crypto market itself. In the past, Bitcoin dominated the digital asset market, but now investors have more options, including major coins like Ethereum, Solana, and BNB, as well as numerous alternative coins (Altcoins).

Data from CoinGecko indicates that Bitcoin's market share has decreased to 56% from 63% last year.

Meanwhile, stablecoins, which are cryptocurrencies pegged to traditional currencies such as the US dollar, are playing an increasingly significant role, increasing their market share from approximately 7% to almost 13% in just one year.

Major stablecoins like Tether have higher daily trading volume than Bitcoin and Ethereum combined, while USD Coin has trading volume close to the combined volume of the next 10 cryptocurrencies.

The AI ​​trend is siphoning investment away from Bitcoin.

In addition to competition within the cryptocurrency market, Bitcoin also has to compete with other asset classes for investment.

During the period when AI began gaining popularity following the launch of ChatGPT in late 2565, Bitcoin also benefited from investors seeking technology assets.

However, currently, the majority of funds are flowing into AI stocks, including data center service providers, chip manufacturers, semiconductors, and manufacturers of related infrastructure equipment.

Over the past year, the US semiconductor stock index has risen by 170%, while Bitcoin has plummeted by over 40%.

LSEG data indicates that Bitcoin ETFs are facing record-breaking redemptions, with net outflows of over $2.7 billion in a single week and over $3.1 billion year-to-date.

Conversely, four ETFs investing in major semiconductor stocks attracted more than $3 billion in new investment in the first week of June alone, and a total of $21 billion since the beginning of the year.

refer : reuters.com

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