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, tokenization and derivatives continue expanding despite weak prices.
Jauvin noted that Bitcoin’s recent rallies have often lasted only a few days before giving back much of their gains.
He also believes the reported $6 billion Binance hack could prolong the recovery in investor confidence.
When Could BTC Bulls Finally Take Control?
Jauvin expects continued volatility and sideways trading over the next six months, although seasonal strength could support a year-end rally.
He sees mid-2027 as a potential turning point when investors may gain greater clarity on economic growth and Fed policy.
His outlook includes continued market rotations and limited sustained upside in the near term and potential economic weakness and further market adjustments in early 2027.
During mid-to-late 2027, there could be a possible shift from expectations of rate hikes toward rate cuts, supporting crypto liquidity.
Jauvin also believes Bitcoin’s growing institutional ownership is reducing its historical volatility, making sharp rallies harder to sustain without significant fresh capital.
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