PANews reported on June 4th, citing CoinDesk, that Jim Ferraioli, Director of Digital Asset Research at Charles Schwab, stated that Bitcoin's recent weakness is not due to waning institutional demand or Michael Saylor's selling of Bitcoin, but rather its loss of dominance in momentum trading. He pointed out that crypto investors have historically followed momentum, but momentum has now left the crypto space. Funds are flowing into AI-related stocks and hot narratives like IPOs; SpaceX's IPO could value the company at $1.8 trillion, and a batch of other IPOs could raise over $200 billion in total, draining liquidity from the crypto market. Crypto traders are also speculating on pre-IPO stocks through synthetic derivatives contracts on DEXs like Hyperliquid.

Ferraioli downplayed the impact of Strategy's sale of 32 bitcoins, arguing it was merely a convenient narrative for a broader trend that has already occurred. He pointed out that while Bitcoin ETFs have broadened accessibility, the asset class remains largely dominated by retail and momentum traders, and with summer historically a seasonally weak period for Bitcoin, there is currently a lack of reason to buy as investors have other options.