AI credit bubble could fuel Bitcoin ‘crack-up boom’ past $1M: Hayes

BitMEX co-founder Arthur Hayes said the debt-fueled artificial intelligence infrastructure boom could end in a 2008-style credit crisis and predicted the resulting government liquidity response could drive Bitcoin (BTC) to $1 million or higher. In a Tuesday blog post, Hayes said investors have mistakenly treated spending on data centers and power infrastructure as high-growth technology investment rather than leveraged real estate. He said he expects lenders to finance excessive construction before a slowdown in AI capital expenditure exposes weaker borrowers. The thesis connects the trillion-dollar expansion of AI infrastructure to a potential new source of crypto-market liquidity. However, Hayes’ predicted crisis, government bailout and subsequent BTC rally remain speculative. Hayes described the AI boom as a “credit story like 2008 and not an earnings story like 2000.” He said BTC could remain between $60,000 and $70,000, with possible downside to $50,000, before the credit cycle and resulting liquidity response drive a recovery. Hayes also forecast that Ether (ETH) would reach $5,000 by year-end and said Maelstrom intends to build a significant position while selling out-of-the...