Solana (CRYPTO: SOL) Foundation President Lily Liu noted that the recent weakness in Bitcoin (CRYPTO: BTC) is being driven less by crypto-specific problems and more by capital rotating into AI and other high-growth opportunities.

Capital Rotation Behind Price Downfall

Liu argued on CNBC on Wednesday that over Bitcoin's 17-year history, it has risen from mere cents to tens of thousands of dollars, reaching as high as $120,000 during the latest cycle.

"Over the long term, it is doing fine," Liu said.

According to Liu, the primary reason behind disappointing price action is a shift in capital toward other speculative growth opportunities.

She pointed to the digital asset treasury boom that fueled crypto markets between June and September 2025 as a major source of liquidity.

Following such a strong rally, some rotation was inevitable. "There will be a bit of relaxation after that," Liu said.

She also cited broader macroeconomic factors, including commodity market volatility, geopolitical uncertainty and a strong equity market, as additional headwinds.

SpaceX IPO Drawing Rotation

Liu identified the upcoming SpaceX IPO as one of the most significant short-term events affecting crypto markets.

The anticipated offering is expected to raise approximately $75 billion and is reportedly being valued at roughly 80 to 90 times earnings.

"When you have a high-risk, forward-looking growth asset like that, it competes for the same capital that often flows into crypto," she explained.

Liu added that roughly 30% of the IPO allocation is expected to be directed toward retail investors, potentially increasing competition for speculative capital. "The dollars are seeking more growth, risk and yield," she said.

According to Liu, AI is driving two powerful technological trends simultaneously that is access to intelligence and access to finance.

"That is the AI meta narrative that is going on, as it should be," she said.

Crypto More Than An Asset Class

Despite the recent focus on AI, Liu maintained that crypto’s long-term value proposition extends beyond token prices.

She described blockchain networks as infrastructure designed to make financial services accessible globally.

As an example, she highlighted plans for tokenized SpaceX shares to become available on the Solana ecosystem, June 12, through issuers including ONDO, XDOCS and SUNRISE.

"Crypto is not only a ticker or an asset class," Liu said. "It represents a global infrastructure network to make finance available to everyone."

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