Schwab executive: Bitcoin did not crash because of Saylor, but rather due to losing its leading position in momentum trading

According to ChainCatcher, CoinDesk reported that Jim Ferraioli, Director of Digital Asset Research at Charles Schwab, stated that Bitcoin’s recent weakness is not due to fading institutional demand or Michael Saylor selling Bitcoin, but rather because it is losing its place as the dominant vehicle for momentum trading in the market.

He pointed out that crypto investors have historically followed momentum, and currently, momentum has shifted away from the crypto space. Capital is flowing into popular narratives such as artificial intelligence-related stocks and IPOs. SpaceX’s IPO could be valued at up to 1.8 trillion dollars, and a batch of other IPOs together could raise more than 200 billion dollars, draining liquidity from the crypto market. Crypto traders are also speculating on pre-IPO stocks through synthetic derivative contracts on DEXs like Hyperliquid.

Ferraioli downplayed the impact of Strategy selling 32 Bitcoin, suggesting it merely provides a convenient narrative for an already existing broader trend. He noted that while Bitcoin ETFs have expanded access, the asset class remains predominantly led by retail and momentum traders. Summer has historically been a seasonally weak period for Bitcoin, and there is currently a lack of reasons to buy, since investors now have alternative options.