Bitcoin BTCUSD continues to struggleas tight liquidity, high interest rates and an AI unwind weigh on crypto markets.

Blockworks analyst Felix Jauvin noted that improving crypto fundamentals could support the next rally once economic conditions improve and investors shift capital away from AI stocks.

Speaking on “Milk Road Daily”, he said the crypto industry has made significant progress, but investors lack the liquidity needed to sustain a major rally.

He highlighted four key factors:

• AI spending: Tech firms are raising billions, competing with crypto for capital.
• Fed policy: Sticky inflation limits rate cuts and liquidity.
• Weak demand: Crypto lacks fresh buyers comparable to 2024’s ETF and Strategy inflows.
• Growing adoption: Stablecoins,…