Arthur Hayes Says AI Bust Could Be Bullish for Bitcoin as Dollar Liquidity Expands

Arthur Hayes said a cooling in AI investment enthusiasm and any resulting shock to credit markets could still be positive for Bitcoin and other digital assets because of expanding dollar liquidity.
He said weak AI demand could reduce spending on data centers and semiconductor demand, putting pressure on more than $1 trillion in investment-grade corporate bonds tied to AI infrastructure and hundreds of billions of dollars in lower-quality loans.
He said a rise in credit stress caused by slower AI infrastructure investment could prompt U.S. government intervention, with the resulting liquidity supply flowing into crypto markets and becoming a catalyst for Bitcoin gains.

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A cooling in artificial intelligence investment could jolt credit markets, but the fallout may still benefit cryptocurrencies such as Bitcoin by expanding dollar liquidity, according to Arthur Hayes.

In his recent essay "Safety First," Hayes, the co-founder of BitMEX, wrote that if stress emerges in AI-linked credit markets, the U.S. government could step in as a "compute buyer of last resort" by purchasing AI computing resources or by supporting insurers exposed to AI-related debt. Either response would increase dollar liquidity, which would be positive for Bitcoin and other digital assets.

Arthur Hayes Says AI Bust Could Be Bullish for Bitcoin as Dollar Liquidity Expands

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