The current downturn in the Bitcoin market is reportedly influenced by a significant outflow of liquidity into artificial intelligence (AI) investments, according to Julian Liniger, co-founder and CEO of the Swiss Bitcoin brokerage, Relai. Liniger posits that as the fervor surrounding AI development and deployment intensifies, capital is being redirected away from traditional assets, including Bitcoin.
He articulated that substantial investments are flowing into entities involved in AI, such as Anthropic, OpenAI, and SpaceX, thereby diminishing the available capital for other investment vehicles. This phenomenon, he suggests, is a primary driver of the prevailing bear market conditions for Bitcoin and other financial instruments.
Key Takeaways
- Global liquidity is reportedly being absorbed by substantial investments in the artificial intelligence sector.
- This capital redirection is seen as a contributing factor to the current bear market in Bitcoin.
- Relai CEO Julian Liniger anticipates a reversal as the AI buildout cycle matures and potentially redirects funds back to Bitcoin.
- User acquisition for Bitcoin services has become more challenging and costly during this market phase.
- Relai has secured a MiCA license in France and recently completed a Series A funding round.
Liniger projects that this trend of liquidity absorption by AI will persist through the current and next year. However, he foresees a potential shift as the AI buildout phase progresses, leading to productivity gains and profitable outcomes for investors. He believes that the wealth generated from these AI-related returns could subsequently find its way back into Bitcoin.
“What will happen is the AI hype will slow down,” Liniger stated. “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.”
Challenges in User Acquisition Amidst Market Conditions
The prevailing Bitcoin bear market has presented challenges for Relai’s business operations, although the company reports steady growth. Liniger indicated that acquiring new users has become a more difficult and expensive endeavor. Despite these hurdles, the Relai application continues to attract thousands of downloads monthly, with approximately 1,000 to 2,000 new active users being onboarded each month.
“Still, it’s going. But it’s much harder… much more difficult to get people convinced about bitcoin because they really have not much money right now,” he commented.
Relai operates as a Bitcoin-only, self-custodial application based in Switzerland. The company was granted its Markets in Crypto-Assets (MiCA) license in France in October 2025 and successfully raised $12 million in a Series A funding round in December 2024, achieving a valuation of $72 million.
As of the latest reporting, Bitcoin (BTC) experienced a slight increase of 0.8% over the preceding 24 hours, trading near $63,375. The cryptocurrency remains significantly below its all-time high, which was approximately $126,000 recorded in October 2025.
Analysis: Regulatory Precedent and Future Frameworks
The ongoing evolution of the cryptocurrency market, particularly concerning Bitcoin, is intrinsically linked to the development of robust regulatory frameworks. The mention of Relai’s acquisition of a MiCA license in France is significant, as it signifies a move towards comprehensive regulatory oversight within the European Union. MiCA aims to harmonize crypto-asset regulations across member states, providing clarity for businesses and enhanced consumer protection.
The legal stakes for companies like Relai involve adherence to stringent compliance requirements, including anti-money laundering (AML) and know-your-customer (KYC) protocols, as well as operational standards related to asset custody and investor protection. Failure to comply with these evolving regulations can result in substantial fines, operational disruptions, and reputational damage.
The broader trend of regulatory bodies worldwide, including the U.S. Securities and Exchange Commission (SEC) and international organizations, focusing on defining and enforcing rules for digital assets, suggests a future where compliance will be a cornerstone of operation for any entity involved in the crypto space. This regulatory maturation, while posing challenges, also offers the potential for increased institutional adoption and greater market stability by mitigating risks associated with illicit activities and market manipulation.
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