Block Scholes, the institutional crypto derivatives data and analytics firm, said on Wednesday that the latest selloff, led by mega-cap tech stocks and the AI trade, may point to early-H2 capital rotation instead of broad de-risking, even though the firm’s own data shows crypto markets have not yet taken in any of that flow.
Research analyst Thahbib Rahman said the equal-weight S&P 500 had outperformed the cap-weighted index since mid-May, even as the benchmark moved sideways. Block Scholes read that as investors taking profits in AI-linked Mag7 names rather than retreating from risk assets altogether.
The note said Bitcoin could be a candidate for that spare capital, since it trades about 50% below its roughly $126,000 all-time peak and has no direct tie to the AI narrative.
“For now, however, looking at perp volumes across BTC, ETH and major real-world assets on Hyperliquid, we don’t quite see evidence of any such rotation yet,” Rahman said.
Block Scholes noted in a 17 June report that crypto sentiment had weakened sharply since mid-May, with spot Bitcoin ETFs recording 13 consecutive sessions of outflows totalling about $4.4 billion. BTC and ETH perpetual volumes on Hyperliquid have also been sitting near multi-quarter lows.
