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

Chain Reaction by Capital Copilot · Jun 5, 2026 · 3m · transcript

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…