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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Amid growing concerns over the tight correlation between tech equities and high-risk assets, a potential correction in the AI sector could trigger a broader market unwind. According to reports, Arthur Hayes stated that his fund, Maelstrom, has cut several crypto positions while maintaining Bitcoin and Ether as core holdings. Hayes expects an AI stock market downturn to spill into crypto before the sector eventually benefits from a subsequent central bank liquidity response.
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Sign InThese warnings come as AI leaders like Nvidia face increased volatility following record-breaking rallies, with analysts linking AI IPO liquidity to broader financial stability. Compared to previous cycles, the correlation between the Nasdaq 100 and the crypto market remains elevated, leaving digital assets vulnerable to forced deleveraging should a tech sector shock occur, per market data.
Traders should monitor global liquidity levels, with Bitcoin at $69,420 and Ether at $3,680 (close June 9, 2026). Looking ahead, the US Initial Jobless Claims scheduled for June 4 will be a key catalyst, potentially signaling whether the US economy can sustain the risk appetite necessary to support both the AI and crypto sectors.
Update: Hayes highlighted that the massive scale of AI infrastructure investment, totaling approximately $1.5 trillion since late 2022, has effectively competed for capital that might otherwise have flowed into Bitcoin. He suggests this capital absorption explains why crypto markets haven't seen more aggressive gains despite the broader tech rally.