GSR: Crypto Bull Run Needs AI Cool-Down and Fed Rate Cuts

Capital rotation into artificial intelligence is draining liquidity from crypto markets, and the Federal Reserve holds the other key to a sustained recovery.

That is the view from GSR’s head of markets, Spencer Hallarn, who laid out the twin conditions for the next crypto bull run in a recent interview, as reported by WuBlockchain.

AI Capital Demands Reshape the Liquidity Landscape Hallarn pointed to big tech firms issuing equity to fund massive AI infrastructure as a direct headwind. That issuance soaks up capital that might otherwise flow into risk assets, including crypto.

It’s not just about equity markets; the sheer scale of AI-related spending is tightening overall financial conditions. When corporate treasuries redirect billions into data centers and specialized chips, the pool of money available for speculative assets shrinks.