Bitcoin Holds Firm Amid AI Market Fears

Bitcoin has demonstrated remarkable resilience, holding steady near $80,000 despite a month of significant market worry surrounding the AI trade. Alex Thorn, head of firmwide research at Galaxy Digital, explained that the cryptocurrency's stability is due to the departure of investors most susceptible to AI-related concerns. These investors, who are now out of the Bitcoin trade, are not responsible for recent market jitters.

Thorn noted that some of the anxiety surrounding the AI trade has begun to dissipate, aided by positive corporate earnings from SK hynix, a rebound in the Kospi index, Oracle's investor day, and the Federal Reserve's decision to hold interest rates steady at its recent meeting. Galaxy Digital maintains a long-term bullish outlook on Bitcoin.

Analysis of quarterly 13F filings, which disclose holdings of large money managers, indicates that "macro and multi-strat fast money hedge funds" were the principal sellers of spot Bitcoin ETFs. These entities, along with others, collectively reduced their holdings by approximately 68,000 BTC. In contrast, significant buyers identified include Mubadala and Morgan Stanley's wealth management unit, which are characterized as holding longer-term capital.

Overall ETF holdings saw a decrease of 14% across all filers, moving from 355,000 BTC equivalent as of September 30, 2025, to 307,000 BTC by June 2026. The next round of filings, due on November 16, 2026, will provide updated data on spot Bitcoin ETF holdings for the quarter ending September 30, 2026.