Arthur Hayes: AI Bubble Burst Could Trigger Bitcoin Rally

Arthur Hayes thinks the AI investment frenzy will eventually play out like the 2008 housing bubble.

According to him, this will force governments to print trillions in new money that could potentially send Bitcoin (BTC) into another massive bull market.

AI Data Centers as the Next Credit Bubble

In an essay published on August 5, the BitMEX co-founder argued that markets are treating AI infrastructure spending as a high-growth technology investment when it more closely resembles commercial real estate.

He believes lenders, private credit funds and governments are financing a massive buildout of data centers and power infrastructure under the assumption that demand will keep accelerating indefinitely.

According to Hayes, that assumption will eventually break down. He expects the pace of AI capital expenditure growth to slow in 2027 before contracting, exposing companies and investors that borrowed heavily to finance projects.

Unlike the dot-com crash, which he described as an earnings story, the crypto investor said the AI boom is fundamentally a credit story similar to the housing market before the global financial crisis.

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