'BTC OG Insider Whale' Representative: AI Drains Liquidity from Crypto Market, Next Bull Run Still Awaits Cycle Reset

BlockBeats News, May 29 – Garrett Jin, the representative of the 'BTC OG Insider Whale,' published an article reviewing the three-month-long U.S.-Iran conflict and the Hormuz Strait crisis, while sharing his views on oil, U.S. stocks, gold, and the crypto market. He stated that the Hormuz Strait has effectively been closed for three months, but the market impact has been lower than expected. The U.S. released strategic reserves and acted as the 'supplier of last resort,' alleviating the crude oil supply gap. His team closed their crude oil positions for profit-taking around late April. Garrett believes that AI is changing market pricing logic. Despite the ongoing Hormuz crisis, U.S. stocks have decoupled from energy shocks, with rising chip stocks and improved corporate earnings offsetting oil price pressures. He pointed out that while the AI sector still faces short-term risks of overvaluation and crowded positioning, in the long term, the cycles of computing power, energy, and data center construction are just beginning. Regarding gold, he argued that gold is not merely a war hedge asset; its primary driver of growth in recent years has been continuous gold purchases by global central banks and the demand for de-dollarization. Gold is essentially a tool to hedge against the long-term depreciation risk of the U.S. dollar. As for the crypto market, Garrett noted that the turning point occurred last October when liquidity in the crypto market began to dry up, and new capital inflows significantly decreased. Some funds shifted to AI concept stocks, making the latter the new 'crypto market.' However, he believes the current phase is more of a cyclical bear market and advises against excessive pessimism, as the next bull market will still require the arrival of a new cycle. [Original Link]