Is AI Draining Bitcoin Liquidity as IBIT Outflows Extend While Wall Street Flocks to Anthropic?

Bitcoin (BTC) price is down by 5.42% in seven days to trade at $73,693 today, May 29. BTC might continue dropping because the IBIT ETF by BlackRock has seen nine straight days of outflows for the first time since it first started trading in 2024. But while IBIT is red, Wall Street has jumped on Anthropic’s Series H that raised $65 billion four months before the IPO of the AI company in October.

BlackRock’s IBIT ETF Sees Longest Outflow Streak

Data from SoSoValue shows IBIT has lost $2.042 million since May 15. CoinGape also reported that $1.3 billion IBIT was sold in a single transaction on May 26. There is very low demand from institutions if no one is willing to buy for two weeks.

Glassnode shows that the market risk for Bitcoin started to go up on May 15, and that explains why IBIT has been bleeding since then.

But the S&P 500 has moved from 7,408 to 7,563 in the nine days that IBIT was bleeding, suggesting that the fall of BTC is not because people are de-risking, but because they are rotating.

Whales and dolphins are also shying away from Bitcoin, according to CryptoQuant. Retail might follow because 580,000 BTC that was bought between $72,900 and $76,600 may be sold.

Analysts Warn AI Will Drain Bitcoin Liquidity Amid Anthropic’s $65B Raise

Anthropic raised $65B with the support of Blackstone, Fidelity, T. Rowe, Capital Group, Jane Street, and other top names on Wall Street.

Analyst Ted on X says that these raises are taking money away from crypto to AI. He says this will continue because of the Anthropic and OpenAI IPOs.

Crypto Rover also noted that people who are buying AI stocks and making a profit are not using that money to purchase Bitcoin.

“AI and memory stocks have done 20–50x in the last year. Almost none of those profits have rotated into crypto. If anything, the opposite is happening. It’s sucking liquidity out of crypto,” he said.

The attention that Wall Street is giving Anthropic even before the IPO happens supports a bearish long-term Bitcoin price forecast, per the analysts.

AI cryptos are also rising because NEAR has risen by 12% in seven days, while BTC is down 5%. Injective and FET have also risen by 12% and 8%, respectively.

Bear Flag Teases BTC Price Drop to $68,000

Bitcoin has created a bear flag after moving from $78,000 to $73,000 and then attempting to move up again. This flag has a height of 6.24%, and that is how far the BTC price is going to fall if it goes below the support of $73,229.

Bitcoin will reach $68,660 if it goes down by 6.24%. But this fall will only happen if it moves below the lower support of the flag pole.

The RSI has a reading of 33 that shows the momentum is weak and Bitcoin might not reach $75,000. That means the drop to $68,000 will likely play out. The IBIT ETF will continue to bleed if Bitcoin goes below $73,229 and starts to drop like the bear flag shows.

But the AO bars that are negative and green show that bears might be losing their grip, and Bitcoin might move past the psychological resistance of $74,000.