Arthur Hayes: AI Bubble Burst Could Trigger Bitcoin Rally

Arthur Hayes thinks the AI funding frenzy will ultimately play out just like the 2008 housing bubble.

According to him, it will pressure governments to print trillions in new cash that would probably ship Bitcoin (BTC) into one other huge bull market.

AI Data Centers because the Next Credit Bubble

In an essay revealed on August 5, the BitMEX co-founder argued that markets are treating AI infrastructure spending as a high-growth expertise funding when it extra carefully resembles business actual property.

He believes lenders, non-public credit score funds and governments are financing an enormous buildout of knowledge facilities and energy infrastructure beneath the idea that demand will hold accelerating indefinitely.

According to Hayes, that assumption will ultimately break down. He expects the tempo of AI capital expenditure progress to gradual in 2027 earlier than contracting, exposing firms and buyers that borrowed closely to finance tasks.

Unlike the dot-com crash, which he described as an earnings story, the crypto investor mentioned the AI growth is essentially a credit score story much like the housing market earlier than the worldwide monetary disaster.

He argued that governments could be unwilling to let strategically essential AI firms fail due to their importance to nationwide safety. Instead, policymakers would reply with large-scale bailouts and liquidity injections that exceed these deployed after 2008.

Hayes mentioned that wave of cash creation would ultimately spill into crypto markets. “Bitcoin will backside and start a secular rise,” he wrote, predicting that panic-driven stimulus may finally push the asset to $1 million or greater.

Bitcoin Recovery Fits Hayes’ Long-Term View

Hayes acknowledged that Bitcoin might not have reached its cycle low but. He urged the cryptocurrency may proceed buying and selling between roughly $60,000 and $70,000, with a doable draw back towards $50,000, whereas capital continues flowing into AI tasks earlier than the market begins questioning returns on these investments.

Bitcoin was buying and selling at round $64,000 on the time of writing, up almost 1% over the earlier 24 hours and barely greater over the previous week, in line with CoinGecko information. The asset had rebounded from a current low close to $62,000 however remained about 49% beneath its October 2025 all-time high of roughly $126,000.

The newest restoration has coincided with easing geopolitical issues. As CryptoPotato reported, Bitcoin climbed again above $64,000 as markets reacted to experiences that the United States, Iran and Oman have been nearing an interim settlement to reopen the Strait of Hormuz, though analysts famous {that a} sustained breakout might depend upon a everlasting deal being reached.

Hayes additionally outlined a extra speedy commerce past Bitcoin. According to him, Ethereum may benefit from rising institutional curiosity in tokenized real-world belongings, and this might push ETH to round $5,000 earlier than the top of 2026 if that narrative positive aspects traction.

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