Crypto Could Need Two Big Changes For The Next Bull Run Capital is currently rotating from crypto toward AI infrastructure, Spencer Hallarn, Head of Markets at GSR, says. Big tech firms are raising capital to fund large AI investments. That is tightening broader market

What happened

Capital is moving from crypto to AI infrastructure as big tech firms raise money for large AI projects, which is tightening the broader market.

Confirmed

Global impact / market context

The shift means less funding for crypto projects, potentially slowing development and price growth, while AI receives more investment, reshaping where investors allocate capital.

Analyst inference

Investors are favoring AI‑related assets over crypto, creating a tighter supply of capital for digital assets and increasing competition for funding among tech sectors.

Analyst inference

What to watch

1. Whether crypto projects can attract alternative funding sources, such as venture capital or token sales, to offset the capital shift. Analyst inference
2. The pace of AI infrastructure spending by big tech, which will indicate how much capital continues to be diverted from crypto. Analyst inference
3. Regulatory responses to tighter market liquidity, meaning the amount of cash available for investment, which could affect both crypto and AI investment flows. Analyst inference

Evidence

• x.com