The current bitcoin (BTC) bear market is driven in part by global liquidity absorbed by AI investments, according to Julian Liniger, co-founder and CEO of Swiss bitcoin brokerage Relai. Still, he expects that capital to rotate into bitcoin once the AI buildout cycle slows.
Speaking with The Block's Gareth Jenkinson at BTC Prague on Thursday, Liniger said investors are pouring capital into investments tied to companies such as Anthropic, OpenAI, and SpaceX, leaving little room for other assets.
"All the liquidity is being sucked up by this [AI] hype. People need to sell something for it. It's bitcoin and most other assets," said Liniger.
However, he expects the current AI buildout cycle to continue through this year and next before slowing and potentially redirecting capital toward bitcoin.
"What will happen is the AI hype will slow down," said Liniger. "The money will be used to pay to build out the whole AI industry this year and next year and then there will be a lot of productivity gains through that… A lot of people will make a lot of money with a return on these investments… and then this money will flow naturally into bitcoin."
