Bitcoin Plunges $1.2T in 8 Months, Erases Trump Rally Gains as Funds Flow to AI

According to Farside Investors, Bitcoin has collapsed from a peak of $126,000 last fall to above $60,000, erasing approximately $1.2 trillion in market value over the past 8 months. All gains accumulated during Trump's second term have been wiped out, with the cryptocurrency down nearly 30% year-to-date and over 6% since the president took office, significantly underperforming the S&P 500's roughly 10% gain during the same period.

Capital outflows are evident: BlackRock's flagship Bitcoin ETF experienced net outflows every trading day between May 15 and June 3, according to market tracker Farside. Funds are shifting toward AI-related assets and SpaceX's upcoming IPO. "Large speculative capital is selling Bitcoin to chase AI-related assets," said Jonathan Beer, Farside's chief. The selloff was magnified by approximately $2.5 billion in liquidations this month alone.