OpenAI ipo filing accelerates capital shift from bitcoin markets

09:04

By: Dakir Madiha

OpenAI ipo filing accelerates capital shift from bitcoin markets

Bitcoin recorded its sharpest weekly decline in more than three years after a wave of capital rotation away from crypto assets toward artificial intelligence equities and upcoming mega listings. The cryptocurrency fell roughly 14 percent over a short trading window, sliding from around 67,000 dollars to near 59,100 dollars. The move triggered about 10 billion dollars in liquidations of leveraged long futures positions as price momentum reversed abruptly.

Market positioning data indicates that hedge funds played a central role in the selloff. After bitcoin reached a peak in early May, these investors began reducing exposure, cutting their holdings in a major US-listed bitcoin fund from about 29 percent to nearly 19 percent by the end of May. Investment advisers increased their exposure during the downturn, highlighting a divergence in strategy between institutional actors.

Exchange-traded bitcoin funds listed in the United States experienced sustained outflows lasting nearly two weeks. Total withdrawals reached about 4.4 billion dollars over the period, marking one of the most persistent redemption waves since launch. In a single week, net outflows exceeded 2.7 billion dollars before stabilising as price volatility intensified. The shift reflected broader risk repositioning across digital asset portfolios.

Attention increasingly moved toward artificial intelligence as a competing destination for speculative capital. Major planned public offerings from technology and aerospace-linked companies, including OpenAI, SpaceX and Anthropic, contributed to a reallocation of funds. One large filing outlined plans to raise tens of billions of dollars in what could become one of the largest listings in history, reinforcing expectations of a concentrated IPO cycle in AI-related sectors.

Leverage amplified the downturn. Open interest in bitcoin futures had climbed back to roughly 51 billion dollars after earlier lows near 31 billion dollars, creating conditions for forced selling when prices reversed. Analysts noted that capital flows into AI infrastructure, estimated at hundreds of billions of dollars over recent months, contrasted with declining inflows into bitcoin-linked exchange-traded products. Bitcoin later stabilised near 63,000 dollars, though market participants continued to watch for signs that forced liquidations and ETF outflows had fully eased.