AI Boom Will Create 'Lehman Moment' for Bitcoin: Hayes Sees $1M Price Target

Arthur Hayes, co-founder of BitMEX, believes that the current AI spending boom is creating a credit bubble. He warns that this bubble will burst around 2027-2028 and lead to a surge in government intervention, which he expects will eventually send Bitcoin's price to $1 million.

Hayes argues that lenders are treating data centers and power plants as financing opportunities similar to lending to Apple, rather than the more risky Lehman Brothers. He estimates that the announced pace of capital expenditure buildout will start to moderate in 2027, with the moderation becoming evident by 2028.

Hayes predicts that China and the United States will eventually step in to bail out over-leveraged AI companies on national security grounds, injecting trillions of dollars into financial markets. He believes this will create a wave of liquidity that will boost Bitcoin's price.

In the short term, Hayes expects Bitcoin to consolidate in the range of $60,000 to $70,000, with a possible low of $50,000 before hitting a bottom. He also remains bullish on Ethereum, forecasting it to reach $5,000 by the end of 2026.