AI IS "DICKING" BITCOIN: 6.2 BILLION ETF CAPITAL MIGRATION BEHIND EXITS

original by:  Michael Ebiekutan

Original: Deep tide TechFlow

Introduction:  Since October 2025, when bitcoin touched the historical height of $126,000, the encryption market is experiencing the most dramatic retreat since 2022. According to the latest report by the marketer Wintermute, in addition to the $6.2 billion net ETF outflows, capital is being rotated to the AI domain on a large scale. The report provides an in-depth analysis of why Coinbase premiums, ETF flows and the spread rate will be key indicators for the current round of structural recovery。

The text reads as follows:

• BITCOIN ETF BECAME THE MAIN DRIVING FORCE BEHIND THE OVERALL DECLINE IN ENCRYPTED MARKETS, WITH NET OUTFLOWS EXCEEDING $6.2 BILLION SINCE LAST NOVEMBER。
• AI NARRATIVES ARE ABSORBING FUNDS ORIGINALLY BELONGING TO THE BITCOIN AND EVEN THE SOFTWARE UNIT。
• Bitcoin may find it difficult to get out of the valley until the Coinbase premium is set, the ETF inflow continues and the base differential rate (Basis Rates) stabilizes。

According to Wintermute, this downward trend in Bitcoin (BTC) has been dominated by ongoing ETF financial outflows and rotational movements to AI since the leveraging of October 10, 2025。

In a report released on Tuesday, the company stated that Bitcoin had responded to all the increases since the November 2024 United States President Trump’s victory. Over the past few months, this top-level encrypted currency has experienced the largest withdrawal of funds since 2022, with prices falling from the historic high of $126,000 in October to about $60,000 last Friday, a drop of more than 50 per cent。

The report notes that after a sharp fall from October to November, Bitcoin was in a state of inter-temporal shocks in December and January, during which slowly accumulated leverage was once again wiped out in the last week by liquidations valued at approximately $2.7 billion。

Wintermute emphasizes that downside pressure comes mainly from the United States market, as evidenced by the negative growth trajectory of Coinbase Premium since December, and by the heavy push of US opponents in the off-site trade last week (OTC)。

In addition, the report notes that the United States spot exchange trading fund (ETFs) has witnessed $6.2 billion in outflows since November, the longest in its history. It's worth noting that the IBIT of BlackRock reached about $10 billion in nominal terms during last Thursday's market crash。

The desktop strategist of Wintermute, Jasper De Maere, writes: "When the ransom forces Sponsors to sell their goods when prices fall, the feedback Loop will become self-enhanced. I don't know

However, last week ' s decline was not limited to encrypted currency. Large plates have also experienced a downturn, with a reversal of precious metals and stocks. On the face of it, encrypted currency once again proves its negative bias, which, in the course of falling, is less than the main asset class – as it has done better in the upward trend – and Wintermute suggests that this pattern is consistent with the bear market。

AI, THE NARRATIVE RUSH IS AT THE EXPENSE OF ENCRYPTION AND SOFTWARE UNITS

Further analysis by the company shows that the resilience of the stock index in terms of the rise and fall in the market is largely attributable to the rotation towards AI rather than to the extensive expansion of the stock market as a whole. Wintermute points out that the software companies in Bitcoin and the Standard 500 Index (S& P 500) have had highly similar trading patterns over the past two years。

De Maere writes: "The true story is that for months AI has been absorbing available capital at the expense of all other assets... If the AI shares are removed from the NASDAQ index, the negative skew of encrypted currency is virtually eliminated. I don't know

He added, "If you want the encrypted money to win again, you need to squeeze the water out of the AI deal. The weak financial paper Print opened the process, but more catalysts were needed. I don't know

Comparison of the performance of Bitcoin with the Standard Software Index (S& P Software)

Source: Wintermute

The report also emphasizes that spot demand (Spot Demand) to initiate structural recovery remains weak. The Ministry of Digital Assets Finance (DATs), which had been one of the main sources of purchasing power in the past year, currently held a deficit of $25 billion as prices dropped their average purchase cost. The resulting contraction of the net asset value (NAV) premium limits their ability to raise funds again to support demand。

According to Wintermute, until the Coinbase premium is reversed, ETF capital flows are reversed and the base margin rate (Basis Rates) stabilizes, it is difficult to see a sustained increase in space. I don't know

By Tuesday, the price of the Bitcoin deal was about $69,700, falling 0.3 per cent in the last 24 hours。