K33 predicts rough summer for BTC as funds shift to AI stocks

Bitcoin could face a volatile, bearish summer as investment funds rotate from the cryptocurrency to AI-related stocks, according to a report from K33 Research cited by CoinDesk. The firm identified slowing institutional demand and outflows from spot ETFs as key drivers of this weakness. K33 noted that over the past three weeks, spot Bitcoin ETFs have seen a net outflow of 62,794 BTC, marking the second-largest outflow period on record. While Bitcoin has failed to break above its 200-day moving average, both the Nasdaq and S&P 500 have been hitting new highs. K33's analysis suggests investors are moving capital into AI stocks and upcoming IPOs for companies like SpaceX and Anthropic. Furthermore, a reduction in futures positions by institutional investors combined with a rise in leveraged long positions indicates a potential for further declines. The research firm concluded that while Bitcoin appears undervalued for the long term, caution is warranted in the short term.