Jim Ferraioli, Head of Digital Currency Research & Strategy at Charles Schwab, said in a CoinDesk interview on June 3 that the main reason for Bitcoin’s recent weakness is that it has lost its status as the market’s dominant momentum driver—not because Strategy founder Michael Saylor sold Bitcoin or because institutional demand has declined. He noted that speculative capital chasing momentum is shifting to alternative opportunities such as AI stocks and IPOs.
Ferraioli’s Momentum Analysis: AI Stocks and IPOs Become New Speculative Targets
Ferraioli told CoinDesk that crypto investors have historically been a group that “chases market momentum,” and that currently two areas are attracting momentum-driven capital: AI-related stocks (including AI infrastructure, data centers, and advanced computing listed companies) and the major upcoming IPOs.
He specifically pointed out that the decentralized exchange Hyperliquid (HYPE) has launched synthetic contracts linked to private-company pre-IPO equity, allowing crypto traders to speculate on expectations of listed companies directly on-chain. Ferraioli believes that Bitcoin’s current problem is not a lack of bullish catalysts, but that investors have found other targets to chase—“if there are other places to choose from, there’s no reason to buy things here.”
Confirmed Data Points Covered in This Article
Bitcoin’s decline over the past month: more than 16%; S&P 500 up 5% over the same period
BlackRock IBIT block trade: a $1.26 billion over-the-counter block trade on May 26, 2026 (NYDIG research source)
Strategy sells: 32 BTC, about $2.5 million (Ferraioli’s assessment that this is an exaggerated market narrative)
SpaceX IPO valuation: the report mentions a valuation of $1.8 trillion; estimates for other major IPOs combined project fundraising of more than $200 billion
Bitcoin’s current price: approximately $64,968 at the time CoinDesk published the article
Ferraioli’s Assessment of Strategy’s Sales and Seasonal Factors
In the interview, Ferraioli said clearly that Strategy’s sale of 32 BTC is not the real reason for this round of Bitcoin’s downturn, calling it a “convenient narrative,” tied to the broader market trend that is already playing out. He also noted that, after the severe volatility over the past year, many ETF investors now view the current price as an opportunity to exit positions rather than add to them.
Ferraioli pointed out that, historically, summer has been a traditional off-season for Bitcoin trading, and in a Charles Schwab market outlook report he noted that “the demand for downside protection still exists.” His overall assessment is that Bitcoin is still mainly composed of retail investors and momentum-driven traders, with institutional adoption lower than the market had originally expected.
FAQ
Why did Jim Ferraioli say Strategy’s selling is “not the real reason”?
Ferraioli told CoinDesk that Strategy’s sale of 32 BTC is financially insignificant, and this claim is only conveniently linked to the trend of momentum capital shifting that is already underway. He believes the more fundamental driver is that speculative capital is moving from Bitcoin to AI stocks and IPO opportunities.
What does Ferraioli mean by “MOMO chasing”?
MOMO (Momentum, momentum chasing) refers to investors chasing assets that are rising or that have the strongest speculative narrative. Ferraioli said that crypto investors have historically operated primarily through momentum chasing, and that currently AI and IPOs have replaced Bitcoin as the main destinations for this type of capital.
What does the $1.26 billion block trade in BlackRock’s IBIT indicate?
NYDIG research indicates that the $1.26 billion over-the-counter block trade involving IBIT on May 26, 2026 suggests a large investor is seeking a fast exit from a Bitcoin investment, using a rarely seen hedge-fund trading strategy for position liquidation.
