Arthur Hayes says AI boom siphons Bitcoin liquidity as ETH bet loses $368K

Arthur Hayes argues the AI investment boom, not a liquidity shortage, is keeping Bitcoin pinned as his own $13.9 million ETH position sits underwater.

Bitcoin's inability to rally despite central bank money printing stems from the AI boom absorbing fresh capital, Arthur Hayes said July 29, as his $13.9 million ETH position sits $368,000 below its average entry.

"Every fresh dollar printed by central banks is being absorbed by AI infrastructure spending rather than flowing into crypto," Hayes, co-founder of BitMEX and chief investment officer at Maelstrom, said in a post on X.

Hayes has put his own capital behind the thesis. Since July 15, he has accumulated 7,213 ETH at a total cost of $13.87 million, averaging $1,923 per token, according to Lookonchain data. His largest single purchase — 3,298 ETH worth $6.39 million on July 28 — came hours before Ether slid from $1,960 to $1,872, leaving the position roughly $368,000 underwater. The trades were executed over the counter through Galaxy Digital, FalconX and Cumberland, meaning none hit the open order book.

The $1,900 level now determines the near-term trajectory for Hayes' position and the broader ETH structure. A sustained hold above that mark keeps his average entry near breakeven; a failure opens the door to a retest of the $1,750-$1,800 range where his re-accumulation began. For Bitcoin, the AI-liquidity competition thesis faces its next test as the Federal Reserve's two-day policy meeting concludes this week, with traders watching for signals on interest rates.

The AI investment boom has become the dominant capital destination in markets, absorbing spending that might otherwise flow into crypto. Fundstrat's Tom Lee has made a parallel argument, saying institutions are moving past simply trading Ethereum toward building on it, citing BlackRock's tokenized fund and Robinhood's ETH-based fee token as structural demand drivers.

Hayes' track record includes rapid reversals — he has publicly championed tokens including Hyperliquid's HYPE, Zcash and Worldcoin before quietly closing those positions as sentiment shifted. The ETH position is larger in both size and stated conviction than those prior trades, making it a signal worth tracking on-chain. His Maelstrom-linked wallet has shown no exit signals in the reporting window, according to Lookonchain.

The Fed's rate decision this week is the immediate catalyst. Forward guidance will determine whether risk assets including crypto can reclaim momentum. A hawkish hold could push ETH below $1,900 and test Hayes' conviction; a dovish signal would validate the re-accumulation thesis.

This article is for informational purposes only and does not constitute investment advice.