Chain Reaction by Capital Copilot

Crypto Markets Crash as Capital Rotates to AI, Zcash Faces Trust Crisis

3 min · 5. juni 2026
episode Crypto Markets Crash as Capital Rotates to AI, Zcash Faces Trust Crisis cover

Beskrivelse

Bitcoin and Ethereum are experiencing their worst week since July 2024, with BTC falling to around $62,500 and ETH dropping below $1,700. Michael Saylor attributes the selloff to capital rotation into AI infrastructure, with approximately $400 billion flowing into AI over six months versus $4 billion in crypto ETF outflows. Meanwhile, Zcash crashed 40% after disclosing a critical four-year-old vulnerability that could have enabled unlimited counterfeiting, raising fundamental questions about trust in privacy coins. In more positive developments, Coinbase closed the first-ever Fannie Mae-backed mortgage using Bitcoin as collateral, and major banks including JPMorgan, Bank of America, and Citi announced plans for a shared blockchain deposit network to compete with stablecoins.

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