BlackRock’s iShares Bitcoin Trust trades near $64,360, down 49% from its October 2025 peak as the firm anticipates renewed demand driven by US deficit fears before midterms. Spot Bitcoin ETFs have recorded $6.4 billion in outflows since May 7, reflecting capital shifts into AI-focused equities.
Robert Mitchnick, head of digital assets, linked Bitcoin’s 49% decline from its $126,080 October 2025 high to AI’s surge and predicts a resurgence as US debt levels become a primary concern before November midterms. He argues that rising deficits and potential monetary expansion will drive demand for the iShares Bitcoin Trust.
Jamie Dimon points to projected $700 billion in AI sector spending and a 4.3% unemployment rate supporting an equity rally. The S&P 500 recently topped 7,600, underpinned by AI-focused companies, suggesting continued capital inflows away from digital assets.
Spot Bitcoin ETFs have experienced $6.4 billion in net outflows since May 7, while stablecoin balances have fallen by $8 billion since May 22. These redemptions indicate institutional funds are reallocating from Bitcoin to other asset classes.
The debate over Bitcoin versus AI for the next wave of capital will crystallize as US budget deficits draw market attention before midterms. A shift in investor focus back to macro hedges could reignite demand for Bitcoin and its flagship ETF.
