Vetle Lunde, head of research at crypto research firm K33, warned on Tuesday that Bitcoin could face deeper declines this summer as investors rotate into AI stocks chasing higher returns. The ongoing capital shift is eroding support for the leading cryptocurrency.
The report noted that spot Bitcoin ETFs lost 62,794 BTC over three weeks, a record second-largest outflow. CME Bitcoin futures open interest dipped to its lowest since October 2023, showing institutions are pulling back.
Leveraged Longs Pose a Risk
While still seeing Bitcoin as undervalued, K33 flagged the buildup of leveraged longs as a risk. Unwinding could accelerate any downside in a market already under outflow and low interest, so caution is advised.

