Saylor Blames AI for BTC Drop, Arca Says ‘Nonsense’ and Points to BTC Sale

A debate has emerged over the cause of last week’s bitcoin price drop, with crypto investment firm Arca rejecting claims that the selloff was driven by capital flowing into artificial intelligence investments.

Bitcoin fell nearly 14% during the week, dropping to around $60,000 before recovering. While Strategy Executive Chairman Michael Saylor argued that massive spending on AI infrastructure temporarily pulled money away from digital assets, Arca believes a different factor triggered market concerns.

Strategy’s Bitcoin Sale Raises Investor Questions

According to Arca, investor sentiment weakened after Strategy disclosed the sale of 32 BTC. Although the transaction represented only a small portion of the company’s holdings, analysts argued that the move raised concerns about whether additional bitcoin sales may be needed in the future to meet obligations tied to preferred share dividends.

Strategy remains the world’s largest corporate holder of bitcoin, with more than 845,000 BTC on its balance sheet.

Market Watches for Future Strategy Moves

Arca suggested that a larger capital raise could ease concerns by providing sufficient funds to cover future dividend commitments. However, uncertainty over potential future sales continues to weigh on investor sentiment.

Despite the decline, analysts noted that bitcoin initially weakened without causing an immediate selloff across the broader crypto market, highlighting growing maturity among digital asset investors.