Arthur Hayes Says an AI Bust Could Become Bitcoin’s Next Major Liquidity Catalyst

Arthur Hayes believes that the Fed may need to inject liquidity into the economy if the artificial intelligence investment bubble bursts, which would benefit Bitcoin. In a Sept.

22 essay titled “Safety First,” the BitMEX co-founder said the crypto asset’s future relies on debt financing for the burgeoning sector of artificial intelligence infrastructure.

Hayes questions whether demand for high-end AI services will grow quickly enough to justify heavy investments in data centers, semiconductors and computing power.

He interprets new calls from top AI developers to throttle frontier-model development as a sign of demand destruction. However, these calls are made due to cybersecurity and safety concerns.