Summary
- Arthur Hayes said the collapse of the artificial intelligence (AI) bubble could send Bitcoin (BTC) to $1 million.
- Hayes said about $1.5 trillion in AI-related debt was issued from November 2022 through mid-2026, nearly matching the increase in the U.S. M2 money supply over the same period.
- Hayes said Bitcoin could rally sharply if the AI bubble bursts and the Federal Reserve (Fed) resumes large-scale liquidity injections.
Forecast Trend Report by Period
BitMEX co-founder Arthur Hayes said Bitcoin could rise to $1 million after the artificial intelligence bubble bursts.
CryptoSlate reported on June 24 that Hayes, speaking on the Bankless podcast, said about $1.5 trillion of AI-related debt was issued from November 2022 through mid-2026. He said that nearly matched the increase in the U.S. M2 money supply over the same period.
Hayes argued that the massive liquidity supplied by central banks flowed into AI infrastructure, including data centers and GPU clusters, rather than into the Bitcoin market.
Macro analyst Luke Gromen said U.S. stocks are hovering near record highs, but a small group of AI-related shares is absorbing a disproportionate amount of market liquidity. He added that Bitcoin is the last fire alarm and the first signal of global liquidity conditions, and that its current stagnation warns that global liquidity is being drained.
Hayes said Bitcoin could stage a sharp rally if the AI bubble bursts and the Federal Reserve resumes large-scale liquidity injections.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.