Arthur Hayes: AI bubble burst could send Bitcoin soaring

Arthur Hayes warns that a debt-driven AI bubble could burst by 2028, triggering massive money printing and potentially pushing Bitcoin to $1 million and Ethereum to $5,000.

Arthur Hayes has issued strong warnings about the rapid expansion of the artificial intelligence sector, comparing it to a debt-fueled real estate boom rather than a genuine technology investment. He points out that much of the current surge in AI data center construction is financed by debt, which could lead to a credit crisis reminiscent of the 2008 financial meltdown. Hayes predicts that if the AI bubble bursts—potentially between 2026 and 2028—governments and central banks would likely respond with massive liquidity injections and monetary expansion to stabilize the financial system. This response, he argues, could drive Bitcoin to $1 million or higher as excess liquidity flows into crypto markets. Additionally, Hayes forecasts that Ethereum could reach $5,000 by the end of 2026. He stresses that how investors perceive AI investments and the associated credit risks will be crucial in shaping the future trajectory of Bitcoin and the broader cryptocurrency market.