Bitcoin (BTC) is extending losses, moving against the strength in U.S. equities, prompting analysis that its recent synchronisation with traditional financial markets is wobbling.

On May 28 (local time), blockchain media outlet Cointelegraph reported that Bitcoin fell further after failing to break through the $78,000 resistance level, with assessments also emerging that the chances of a short-term bullish reversal have diminished.

Over the past two months, Bitcoin showed a high correlation with U.S. stocks led by technology shares. This time, the moves diverged. While Bitcoin slipped below $75,000 on May 27, the Nasdaq 100 index hit an all-time high and the Russell 2000 index also set a fresh record. Rather than a broad rise in risk-off sentiment, the move is interpreted as funds shifting into other assets instead of Bitcoin.

Selling by listed mining companies and their expanding investment in AI infrastructure were cited as drivers of the weakness. The outlet reported that miners have recently sold part of their Bitcoin reserves and redirected the proceeds into AI data centres and high-performance computing infrastructure. In a related move, TeraWulf said it would build additional 1 gigawatt high-performance computing facilities in Kentucky. As miners begin to see greater growth potential in expanding AI businesses than in Bitcoin mining, analysis says supply pressure is rising in the market.

Large transfers also shook investor sentiment. On-chain analytics platform Lookonchain said Trump Media & Technology Group moved 2,650 BTC, worth about $250.5 million, to a cryptocurrency exchange address on May 25. The company is controlled by the family of U.S. President Donald Trump and had previously accumulated 11,542 BTC at an average price of more than $118,500. A transfer to an exchange does not necessarily lead to selling, but the market took it as a sign of possible additional sales.

Delays in U.S. Congress handling pro-cryptocurrency bills are also acting as a burden. The digital asset PARITY Act contains provisions to exclude mining and staking rewards from taxation until the point of sale, but even a hearing schedule has yet to be set. The digital asset market Clarity Act is also waiting for a full Senate vote, with no specific timetable disclosed. The bill outlines a separation of oversight authority between the SEC and the CFTC and would organise digital asset market structure, and the industry has regarded it as key legislation.

Weaker liquidity expectations are also having an impact. Markets expected the U.S. Federal Reserve to expand purchases of Treasury securities and increase its balance sheet again, but total assets have been flat at about $6.7 trillion since April. The article said inflation pressure from higher oil prices is limiting an expansion of the Fed’s easing policies.

In contrast, U.S. equities are seeing funds concentrate in AI-related stocks. Among the world’s top assets by market capitalisation, many of the biggest gainers have been AI semiconductor and infrastructure companies. SK Hynix and Micron surpassed $1 trillion in market capitalisation, and some AI-related stocks have risen more than 20 percent over the past week. Risk-asset appetite remains intact, but funds are tilting toward an AI theme rather than Bitcoin.

Against this backdrop, the market is also seeing forecasts that it may not be easy for Bitcoin to break strongly above $82,000 in the short term. Investors are watching miners’ potential additional selling, the U.S. Congress schedule for cryptocurrency legislation and shifts in the Fed’s liquidity policy as the next key variables.