Bitcoin Momentum Slows as AI Markets Absorb New Liquidity, Arthur Hayes Says

BitMEX co-founder Arthur Hayes has argued that a significant portion of newly created U.S. dollar liquidity is flowing into artificial intelligence markets, which he believes is helping explain why Bitcoin has struggled to extend its rally despite overall monetary expansion.

Building on this view, he noted that a combination of rising oil prices, selling pressure tied to major AI IPOs, and political developments in the United States could contribute to a broader correction in AI-linked stocks. He suggested such a move could temporarily weigh on crypto markets before conditions support a recovery driven by renewed liquidity.

In line with this outlook, Hayes noted that his firm Maelstrom trimmed positions in HYPE, WLD, NEAR, and ZEC last week, while maintaining exposure to Bitcoin and Ethereum and exploring selective short positions via derivatives.

Source: Arthur Hayes