Bitcoin (CRYPTO: BTC) is down 6% over the past week as analysts discuss whether the downturn may be closer to its conclusion than its beginning.

“Bag Holders With A Dream But No Reality“

In a Pomp podcast on June 22, Anthony Pompliano highlighted growing pessimism across the crypto market.

Bitcoin has effectively retraced much of its 2024-2025 cycle gains, leaving many investors questioning whether they are “bag holders with a dream but no reality.”

However, some market observers argue the weakness has less to do with BTC itself and more to do with capital chasing artificial intelligence opportunities.

Technical analyst CryptoCon cautioned that historical cycle-bottom indicators have not yet reached levels seen during previous bear-market lows.

He noted that Bitcoin’s Realized Market Cap moving average model still points toward a potential bottom around $42,500, implying a decline of roughly 66% from the cycle peak.

Also, bear markets are getting less severe by percentage drawdown (86%, 84%, 77%), but cycle-bottom data remains largely unchanged across cycles.

AI Sucking Capital, Bottoming Miner Capitulation Signals

Elsewhere, Michael Saylor said the AI boom is drawing investment away from Bitcoin and other asset classes as investors chase capital raises from companies like OpenAI, SpaceX, and Meta.

He expects that trend to reverse later this year, with profits from AI eventually flowing back into digital assets.

Meanwhile, veteran investor Jordi Visser argues Bitcoin remains in a bear market, citing weak momentum and its position below key long-term moving averages.

He says capital is currently flowing into AI and earnings-driven investments, making it difficult for BTC to outperform.

Analyst Lark Davis says on-chain data points to a potential Bitcoin bottom, highlighting the Puell Multiple and signs of miner capitulation.

With mining difficulty down about 20% from its peak and some miners shifting resources to AI data centers, selling pressure from miners may be easing, bringing Bitcoin closer to a cycle low.

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