Bitcoin has fallen behind artificial intelligence stocks in terms of sentiment as capital rotates into the semiconductor sector, according to macro analyst Lyn Alden. In an interview with Natalie Brunell on July 7, Alden noted that memory-chip names have become the "fastest horse in the race," pushing investors away from assets such as Bitcoin and gold. This shift coincided with free cash flow compression among major hyperscalers ramping up AI spending. Alden argued that "there’s nothing coming to save Bitcoin" and that the asset must survive on its own merits, though it is currently near the bottom of its historical valuation range.

Bitcoin Price Performance

Over the past month, Bitcoin has declined approximately 3%, slipping to around $60,000. This drop follows a peak near $124,000 in late 2025. The current cycle has been defined more by corporate adoption rather than retail participation, with fewer small holders moving Bitcoin into self-custody compared to previous cycles. Additionally, stablecoins and tokenized real-world assets have failed to generate durable demand outside of Bitcoin.

Market Outlook and Strategy Inc.

Alden commented on Strategy Inc., stating the company acted reasonably after volatility impacted its preferred stock product. However, she advised caution regarding how the company markets yield products tied to Bitcoin, citing tail risks during sharp price declines. Looking ahead, Alden does not anticipate a massive liquidity expansion in the near term, only a gradual increase in money supply. In her base case, Bitcoin is unlikely to reclaim new all-time highs this year, but she expects the asset to move back into fresh six-figure territory over the next couple of years if it continues its long-term adoption path.

President Trump’s executive order to create a strategic Bitcoin reserve has encountered legal and bureaucratic obstacles as multiple federal departments vie for control over the proposed crypto stockpile. The Trump administration is evaluating the best structure for the reserve amid concerns over whether the U.S. Treasury Department possesses the legal authority to manage the Bitcoin holdings. The White House has argued that premature sales of seized Bitcoin have cost taxpayers approximately $17 billion over time, highlighting the financial stakes of the reserve's management.

The reserve was originally designed to hold Bitcoin seized by federal agencies, with provisions for future budget-neutral purchases. However, the Commerce Department has emerged as a potential alternative custodian for the assets. The Justice Department’s Office of Legal Counsel is currently collaborating with the Treasury and Commerce departments to review the legally available options for structuring the reserve.

White House spokesperson Liz Huston stated that the administration "continues to evaluate the best structure for a Strategic Bitcoin Reserve and U.S. Digital Asset Stockpile." According to data from Arkham Intelligence, the U.S. government currently holds more than $20 billion worth of Bitcoin. The resolution of the jurisdictional dispute will determine which agency ultimately oversees these significant assets.

Market and Political Context

While discussing the initiative with reporters on July 6, President Trump avoided directly addressing whether Bitcoin would be integrated into Trump accounts. He reiterated his strong support for cryptocurrency, framing it as a strategic industry essential for U.S. leadership to prevent China from gaining a competitive advantage. Trump contrasted the rapid crypto adoption during his tenure with the policies of the previous administration, asserting that a pro-crypto stance has positioned the U.S. as a global leader in digital assets.

The President emphasized that this leadership extends to parallel investments in artificial intelligence and energy infrastructure. Despite the administration's push, prediction markets reflect skepticism regarding the immediate implementation of the reserve. A market on Polymarket titled "US national Bitcoin reserve before 2027?" indicates a 20% chance that a strategic Bitcoin reserve will be established by the end of the year.