Arthur Hayes Sells Altcoins, Keeps BTC as AI Risks Grow

TLDR:

• Arthur Hayes says AI borrowing absorbed liquidity that could have flowed into Bitcoin markets.
• Maelstrom sold HYPE, NEAR, WLD and ZEC while retaining Bitcoin and Ether positions.
• Hayes tied Bitcoin’s 2025 peak to accelerating AI capital expenditure and debt issuance.
• Rising energy costs and major AI IPOs feature prominently in Hayes’ current market outlook.

Bitcoin’s muted performance despite expanding liquidity may stem from an unexpected source, according to BitMEX co-founder Arthur Hayes. In a new market essay, Hayes argued that artificial intelligence investments have absorbed a large share of newly created dollars, limiting capital flows into crypto markets. 

He also disclosed that his family office, Maelstrom, sold several digital assets last week while maintaining exposure to Bitcoin and Ether. The comments come as investors assess the relationship between AI spending, macroeconomic conditions, and crypto market performance.

Arthur Hayes Links Bitcoin Liquidity Slowdown to AI Spending

Hayes said the rapid expansion of AI infrastructure has redirected capital that might otherwise have flowed into Bitcoin and other risk assets. He pointed to a surge in data center construction and AI-related borrowing since late 2022.

According to figures cited in his essay, AI companies and related businesses issued roughly $1.5 trillion in debt during the period. Hayes noted that U.S. M2 money supply growth increased by a similar amount over the same timeframe.

He argued that this overlap helps explain why Bitcoin failed to extend gains despite broader liquidity expansion. In his view, AI became the dominant destination for newly created dollars, particularly during 2025 when capital expenditure accelerated.

Hayes compared Bitcoin’s performance with major AI-linked stocks and noted that several technology companies delivered stronger returns over the cycle. He suggested that investor demand remained concentrated in businesses tied to data centers, semiconductors, and artificial intelligence infrastructure.

The essay also connected Bitcoin’s October 2025 peak to the sharp rise in AI capital spending. Hayes stated that crypto markets struggled to attract fresh liquidity as funding increasingly moved toward AI-related projects.

Arthur Hayes Sells HYPE, NEAR, WLD, and ZEC

Beyond liquidity concerns, Hayes outlined several factors he believes could pressure AI stocks and broader risk markets. He highlighted rising energy costs, planned AI-related initial public offerings, and potential political scrutiny of the sector ahead of U.S. elections.

He argued that higher oil prices could increase operating costs for AI companies because data centers depend heavily on electricity generation. Hayes also pointed to expected listings involving SpaceX, Anthropic, and OpenAI as potential sources of additional market supply.

Against that backdrop, Hayes revealed that Maelstrom reduced its crypto exposure. The firm sold Hyperliquid’s HYPE token, NEAR Protocol’s NEAR token, Worldcoin’s WLD token, and Zcash’s ZEC.

He said the ZEC sale followed concerns surrounding the Orchard Pool bug. Meanwhile, Bitcoin and Ether remain core holdings within the portfolio.

Hayes added that he expects Bitcoin could face downside pressure if an AI-led market correction triggers tighter credit conditions. However, he said Maelstrom intends to keep its BTC position while potentially using derivatives for tactical short trades during periods of market volatility.

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