Arthur Hayes Says AI Bubble Pop Could Spark Bitcoin Surge

Arthur Hayes believes the current artificial intelligence investment frenzy will eventually mirror the 2008 housing crisis. In a recent essay, the BitMEX co founder explained that markets are treating AI infrastructure spending like standard tech growth when it actually looks more like commercial real estate. Lenders and governments are funding a massive buildout of data centers and power grids under the assumption that demand will keep growing forever. Hayes expects this trend to slow down by 2027, leaving heavy borrowers exposed and creating a significant credit shock.

Because governments view AI infrastructure as critical to national security, Hayes argues that policymakers will step in with massive bailouts rather than let major companies fail. He anticipates that central banks will print trillions of dollars in new liquidity to rescue the financial system. According to Hayes, this flood of newly printed money will eventually spill over into crypto markets, helping Bitcoin bottom out and begin a massive secular rise toward a potential $1 million price tag.

In the near term, Hayes warns that Bitcoin might not have reached its final cycle low yet. He sees the cryptocurrency trading between $60,000 and $70,000, with a possible dip toward $50,000 as capital keeps flowing into AI projects. Bitcoin recently traded near $64,000 following a rebound from lower levels, aided by easing geopolitical tensions. Meanwhile, Hayes also expects Ethereum to benefit from rising institutional interest in tokenized real world assets, potentially pushing ETH toward $5,000 before the end of 2026.