Bitcoin dropped below $75,000 this week after failing to hold a brief push toward $78,000, deepening its underperformance against a U.S. stock market still setting records. The move comes as major crypto miners and corporate holders sell holdings and redirect resources toward artificial intelligence infrastructure.
Bitcoin decouples from record‑setting stocks
The decline has weakened the tight correlation Bitcoin had maintained with U.S. equities for roughly two months. While the largest cryptocurrency has struggled to reclaim higher levels, the Nasdaq 100 and Russell 2000 both notched all‑time highs this week.
Analysts say the odds of a decisive rebound above $82,000 have diminished as macro conditions and sector flows favor AI‑linked equities over digital assets. U.S. traders have largely looked past the three‑month conflict involving Iran, focusing instead on strong earnings and growth expectations in the AI sector.
Miners pivot from crypto to AI infrastructure
Softening demand for Bitcoin is being linked in part to sales by large public mining firms, which are increasingly reallocating capital toward data centers designed for high‑performance AI computing.
- TeraWulf confirmed plans to build a 1‑gigawatt high‑performance computing facility in Kentucky, aiming to diversify away from pure Bitcoin mining.
- IREN recently closed a $3 billion convertible notes deal to fund its own AI expansion, signaling a long‑term commitment to this new line of business.
Analysts project that for some of these transformed companies, AI and high‑performance computing could represent as much as 70% of total revenue by the end of 2026. This shift is being partially financed by liquidating mined Bitcoin, adding to the available supply in the market and pressuring prices.
Corporate Bitcoin sales add to selling pressure
Selling by corporate treasuries has added another headwind. Trump Media & Technology Group moved 2,650 BTC, worth roughly $205 million at the time, to a crypto address last Friday that market participants associate with exchange activity.
Filings show the company previously bought 11,542 BTC at an average price above $118,500 per token. With current market prices far lower, the firm is sitting on an unrealized loss estimated at more than $400 million, and any further disposals could deepen near‑term selling pressure.
Policy uncertainty clouds U.S. digital asset outlook
Regulatory uncertainty in Washington continues to weigh on sentiment. Two key bills aimed at defining the regulatory and tax landscape for digital assets are moving forward but remain far from enactment.
- The Digital Asset Market CLARITY Act, which passed the Senate Banking Committee on May 14, 2026, in a 15‑9 vote, would assign Bitcoin and similar tokens to the Commodity Futures Trading Commission as “digital commodities,” while leaving the Securities and Exchange Commission in charge of tokens deemed investment contracts.
- The Digital Asset PARITY Act, introduced on May 19, proposes delayed taxation for mining and staking income and outlines rules for areas such as wash sales and lending.
Neither bill has a firm date for a full Senate vote or broader congressional action. Together with the existing GENIUS Act governing stablecoins, these measures are expected to define how the CFTC and SEC share oversight, but the lack of concrete timelines has slowed progress toward a comprehensive framework.
Fed balance sheet pause and oil prices weigh on liquidity hopes
Monetary conditions are also dampening risk appetite in crypto. The Federal Reserve’s total assets have held near $6.7 trillion since mid‑April, standing at approximately $6.714 trillion as of May 20, 2026. This marks a pause after previous months of balance sheet expansion that had boosted liquidity across markets.
Rising crude oil prices are complicating the Fed’s options. Officials have warned that higher energy costs could both restrain growth and push inflation higher. Federal Reserve Governor Philip Jefferson recently underscored the “upside risks” to inflation from elevated oil, reducing expectations for renewed large‑scale asset purchases that some market participants had anticipated earlier in the year.
AI sector soars as capital rotates away from crypto
In stark contrast to Bitcoin’s consolidation, companies tied to AI computing and infrastructure have posted outsized gains. Demand for high‑bandwidth memory chips used in AI data centers has driven:
- SK Hynix’s market capitalization above $1 trillion for the first time.
- Micron Technology’s valuation past the $1 trillion mark as well.
Several other technology names linked to AI infrastructure have jumped 20% or more in a single week, highlighting a powerful rotation of capital into hardware and services powering the AI build‑out.
Key levels and near‑term outlook for Bitcoin
Bitcoin is now trading in a tight range, with technical data indicating strong support around $72,000, a level that held during recent volatility. On the upside, resistance has formed just below $80,000, where heavy liquidity and psychological factors are capping rallies.
With miners and corporate holders selling into strength, regulatory timelines uncertain, and macro liquidity on hold, traders face a market where the path of least resistance appears sideways in the near term. Any sustained move will likely depend on a shift in either policy signals from the Fed, progress on U.S. digital asset legislation, or a reversal in the current preference for AI‑linked equities over crypto exposure.
As AI reshapes crypto mining, learn how automated strategies can help you adapt—explore AI copy trading today.
Disclaimer: The content on this page is provided for general informational purposes only and does not represent the views or financial advice of Toobit. We make no guarantees regarding the accuracy or completeness of this information and shall not be held liable for any errors, omissions, or outcomes resulting from its use. Investing in digital assets involves risk; users should independently evaluate their financial situation and the risks involved. For further details, please consult our Terms of Service and Risk Disclosure.
