ParaFi Partner Bets AI Capital Flees to Bitcoin After Crash

This has contributed to the current stability in crypto prices, which have been ranging over the $60K support for some time, given that there is less interest and liquidity open to be injected into crypto markets.

Known crypto analyst and co-founder of BitMEX, Arthur Hayes, has openly backed this notion. “There’s no cash to go to crypto. AI sucked it all up and it’ll keep sucking it up until the bubble bursts,” he assessed in a June interview on the New Era Finance Podcast with Michaël van de Poppe.

Nonetheless, Jeff Park, partner of ParaFi Capital, an investment firm with over $1.9 billion in assets under management (AUM), believes that this wealth will migrate to bitcoin after the bubble inevitably bursts.

“It’s hard to believe this right now, but all this AI wealth creation is very bullish for BTC because whenever the asset-liability mismatch breaks (they always do) and capital flees, the infinite-duration asset that is Bitcoin will be waiting coiled in a generational indifference,” Park stressed on social media.

Park’s bet on excess liquidity returning to bitcoin raised criticism from some who pointed out the correlation between the stock market and the crypto industry. Critics argued that a mutual fall might ensue if AI finally falls when debt starts affecting companies with high data center and software capital expenditure and the tech fails to reach the relevance expected to produce a change in society as we know it.