On June 2, Yi Lihua, founder of Liquid Capital (formerly LD Capital), shared his market view. Yi noted Bitcoin's recent decline has been 'smoother' than expected, with the biggest drag being capital diversion to stock markets, rather than macro policies. This reflects the squeeze the AI boom is putting on traditional crypto markets.
He stressed that AI's boundless potential and solid fundamentals are attracting massive inflows, creating a siphon effect on crypto. Narrative-driven crypto assets have fallen from 'sweetheart' to 'old aunt' status, highlighting the shift in investor preference.
Looking ahead, Yi expects the crypto market to go through a bottoming and volatile phase in the coming months until positions are fully transferred and most participants exit. He advises focusing on learning and investing in AI, while gradually accumulating crypto positions on dips.