Bitcoin ETF has seen net outflows for many days, analysts: When Bitcoin falls, investors are paying attention to emerging trends such as Hyperliquid and ai16z

The Bitcoin price continued to hit new highs in mid-December and approached $110,000 before retreating. It then fluctuated between $100,000 and $93,000, while the performance of tech giants was poor, leading to a decline in the US stock market. Bitcoin ETFs also faced net outflows of nearly $90 million, and analysts pointed out that during the Bitcoin downturn, the narratives around AI and high-performance DeFi were attracting market liquidity. (Tech giants' slump drags down US stocks, Bitcoin spot ETFs face capital outflows) Table of Contents - Bullish reversal, Bitcoin ETFs continue to see net outflows - Investors are focusing on Altcoins and emerging narratives - Will the strong US dollar lead to reduced liquidity and an early end to the bull market? Bullish reversal, Bitcoin ETFs continue to see net outflows According to SoSoValue data, Bitcoin ETFs have maintained net outflows since December 19, with only a net inflow of $475 million on December 26 last week. Comparing the BTC/USDT daily chart, it can be seen that after reaching a historical high of $108,353 (Binance spot data) on December 17, the daily line formed a doji, which usually indicates a reversal of the trend (bearish pressure suppressing bullish). The prices also continued to decline on the 18th and 19th, and Bitcoin ETFs began to see net outflows. Investors are focusing on Altcoins and emerging narratives According to the report, Bitget's chief analyst Ryan Lee said: "AI-driven investments and high-performance DeFi platforms are becoming the next investment hotspot." The report mentioned Hyperliquid and a16z as targets. Hyperliquid, which claims to have no VC, market maker participation, and maintain relationships with the community, has become one of the most successful projects in the second half of the year. In addition to being a DEX, it is also working on building its own EVM public chain, pushing the narrative and price to a historical high of $35. (Reviewing the most successful airdrop this year: What made Hyperliquid become the textbook of narrative and token economics?) The latter is the fund co-founded by the well-known venture capitalist Marc Andreessen of a16z, which spans Web2 and Web3. Interestingly, the a16z fund is managed by AI. (a16z personally dives into the meme trend with AI16Z? Venture capitalists support the AI meme coin craze) Will the strong US dollar lead to reduced liquidity and an early end to the bull market? The report states that during the Bitcoin downturn, investors are shifting their attention and liquidity to Altcoins and these emerging narratives. YouHodler's market manager Ruslan Lienkha said: "While the market conditions of emerging technologies and decentralized platforms provide exciting opportunities for investors, the strength of the US dollar is putting pressure on digital asset prices." He added: "Persistently higher interest rates will make bonds and US Treasuries more attractive to capitalists and drive up the value of the US dollar." "Conversely, higher interest rates will reduce the available liquidity for risky assets like Bitcoin, leading to a decrease, or even net outflow, of capital into the cryptocurrency market." Risk Warning Cryptocurrency investment is highly risky, and its price may fluctuate dramatically, and you may lose your entire principal. Please carefully evaluate the risks.