Bitcoin has not fully benefited from expanding dollar liquidity because a share of new capital has been directed toward artificial intelligence infrastructure. In a recent market commentary, Arthur Hayes argued that the growth of AI-related investment has absorbed funds that might otherwise have flowed into digital assets, influencing both market performance and investor positioning.
Hayes said his investment firm, Maelstrom, reduced exposure to several cryptocurrencies last week, selling HYPE, NEAR, WLD, and ZEC while maintaining positions in Bitcoin and Ether.
He noted that the decision was driven by capital preservation considerations, adding that ZEC was also affected by concerns surrounding the Orchard Pool bug. According to Hayes, the firm may use derivatives to establish short-term tactical short positions while retaining its core holdings.
The portfolio changes come as Hayes outlines a scenario in which weakness in AI-related equities could spill into broader financial markets. He stated that investors have invested large amounts of capital in AI stocks, leaving fewer funds available for crypto assets, even when digital currencies outperform on a relative basis.
Hayes said Bitcoin could face additional downside pressure if AI stocks experience a correction. However, he added that broader financial disruption could eventually trigger renewed liquidity measures, creating conditions for a later Bitcoin recovery. Despite holding onto his Ether holdings, Hayes described his current strategy as focused on preserving capital while remaining prepared for future market opportunities.
Beyond financial markets, Hayes linked possible risks to rising energy costs and U.S. political developments. He argued that higher oil prices could become an issue for voters if they increase gasoline, food, and household expenses ahead of the upcoming elections.
According to Hayes, elevated energy costs could prompt political leaders to pursue policies to address public concerns about inflation and rising living costs. He also suggested that large data center projects could attract increased scrutiny because of their energy consumption, local infrastructure demands, and economic impact on communities.
Hayes pointed to recent market reactions involving technology companies as examples of how political rhetoric can influence investor sentiment. He cited volatility in technology-related stocks and broader concerns surrounding AI-focused businesses as factors that could affect market confidence.
(adsbygoogle = window.adsbygoogle || []).push({});Hayes traced the trend back to late 2022, when the launch of ChatGPT coincided with Bitcoin’s market bottom following the collapse of FTX. While Bitcoin later rallied, he noted that AI-related companies delivered stronger gains over the same period.
He estimated that AI firms have issued roughly $1.5 trillion in debt since late 2022 to finance data centers, power infrastructure, and specialized computing hardware. Hayes argued that this capital demand has competed directly with other assets for available liquidity, making AI one of the dominant forces shaping financial markets in recent years.
