Investment firm Arca has pushed back on MicroStrategy founder Michael Saylor's explanation for last week's Bitcoin price decline, calling his reasoning nonsense. Saylor attributed the drop to capital rotating out of crypto and into artificial intelligence investments, a narrative Arca flatly rejects. Instead, Arca points directly at Strategy's own sale of 32 BTC as the proximate cause of the crash, suggesting the firm's liquidation created immediate sell pressure in the market. The dispute highlights broader tension around how large institutional holders can influence Bitcoin's price and the narratives used to explain sudden market moves. Arca's counter-narrative implies that insider selling, rather than macro capital flows toward AI, was the more significant factor driving last week's downturn.
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