Arthur Hayes: Bitcoin set for $126K rally amid AI, war spending

Arthur Hayes says Bitcoin bottomed at $60,000 and is set to rally to $126,000, driven by global AI investment, military spending, and monetary easing.

Arthur Hayes believes Bitcoin’s bull market began in late February, following the US-Iran conflict, with the cryptocurrency bottoming at $60,000 and now poised for a rally to $126,000. He attributes this bullish outlook to a global expansion of fiat credit, driven by massive investments in AI infrastructure, increased military spending, and ongoing monetary easing by central banks. Hayes argues that the AI arms race between the US and China is fueling unprecedented credit creation. Combined with geopolitical tensions and structural shifts in global investment, this creates a favorable environment for Bitcoin’s growth. He also warns that AI-driven inflation and rising costs could become a significant political issue in the US ahead of the midterm elections, potentially prompting more investors to use Bitcoin as a hedge. Hayes asserts that these combined economic and political factors make a return to Bitcoin’s all-time high inevitable, even if previous price targets have not always been met on schedule.