Bitcoin’s sluggish momentum this year has a lot of crypto traders scratching their heads, but according to one of the industry’s biggest liquidity providers, the answer may not be inside crypto at all. Spencer Hallarn, Head of Markets at GSR, the prominent GSR crypto market maker, said in a recent interview that the slowdown gripping digital assets is being driven in large part by capital quietly rotating into artificial intelligence infrastructure, pulling liquidity away from crypto markets just as investors had hoped for a fresh leg higher.

Key takeaways

• GSR’s Spencer Hallarn says the crypto market slowdown is partly driven by capital shifting toward AI investments.
• Big tech firms issuing equity to fund AI infrastructure are…