Arthur Hayes Sees Mega Crypto Bull Run Beyond AI Encryption Fears

The forecast builds on his earlier argument that government efforts to manage borrowing costs can support digital assets. In an Aug. 24 essay, Hayes contended that expanding dollar liquidity could flow into bitcoin and other cryptocurrencies. His framework emphasizes financial conditions as a driver of investment demand.

Money Printing Could Fuel Crypto’s Next Rally

Greater availability of money and credit underpins Hayes’ expectation that policy responses to financial pressure could lift prices. Global liquidity describes those conditions across the financial system. In his scenario, capital released through government intervention could reach speculative investments, including cryptocurrencies.

In the Aug. 24 essay, Hayes connected that reasoning with the U.S. Treasury’s expanded bond repurchases, arguing that Treasury buybacks supported a new bitcoin bull market. These debt-management operations purchase outstanding government securities. He viewed their effects on yields as favorable to risk assets while distinguishing them from Federal Reserve asset purchases.

His AI-bust scenario anticipates a larger intervention if heavily financed infrastructure encounters financial stress. In an interview published Oct. 2, Hayes projected that an AI bust could trigger multitrillion-dollar support, potentially benefiting crypto through money creation. He placed the prospective reckoning around 2027 or 2028 as target="_blank" rel="noopener noreferrer">disputed an imminent AI breakthrough, arguing there was no evidence of a break in established cryptographic assumptions. His objection addresses the technical premise behind the anxiety Hayes incorporated into his bullish analogy.