GSR: Crypto Bull Run Return Requires Cooling AI Investment and Fed Rate Cuts Spencer Hallarn, Head of Markets at GSR, stated in a recent interview that the current crypto market slowdown is partly driven by capital rotating into AI, as big tech companies issue equity to fund AI infrastructure and tighten broader market liquidity. In this environment, clients are showing increased focus on long-term budget planning, OTC hedging structures, and RWAs. Regarding tokenization, Hallarn noted that many walled-garden tokenization platforms with heavy KYC requirements lack meaningful transaction volume, emphasizing that the true opportunity in tokenization is fixing traditional banking and settlement plumbing rather than merely wrapping assets into tokens. He added that if AI-related investments cool off and the Federal Reserve begins cutting rates, liquidity could return to support higher Bitcoin prices.
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