Arthur Hayes predicts AI bubble collapse will send BTC to $1M

BitMEX co-founder Arthur Hayes has presented a scenario in which Bitcoin could surge to $1 million when the current artificial intelligence (AI) bubble bursts, triggering a massive bailout from the Fed. CryptoSlate reported that Hayes, speaking on the Bankless podcast, argued the AI sector is currently absorbing all market liquidity. Hayes noted that from November 2022 to mid-2026, approximately $1.5 trillion in AI-related debt was issued, a figure that he said nearly matches the increase in the U.S. M2 money supply over the same period. He argued that the vast sums of money printed by the central bank have been entirely absorbed by AI infrastructure, such as data centers and GPU clusters, instead of flowing into the Bitcoin market. Macroeconomic analyst Luke Gromen echoed this sentiment, stating that while the stock market is hitting all-time highs, the structure is unhealthy as a few AI-related stocks are absorbing all liquidity. Describing Bitcoin as "the last working fire alarm" for the state of global liquidity, Gromen suggested that the cryptocurrency's current stagnation is a warning that global liquidity is drying up.