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…