AI Bubble Collapse Could Spark $1 Million Bitcoin Surge

Arthur Hayes, co-founder of BitMEX, is warning that an impending AI bubble collapse could lead to a credit crisis similar to the 2008 global financial crisis. He believes the current investment boom in AI data centers and power grids is driven by real-estate development and credit expansion.

Hayes predicts that if the U.S. government launches massive liquidity support after the AI bubble bursts, Bitcoin could rise above $1 million. According to Hayes, the dollar's value would be diluted as a result of large-scale liquidity injections, making Bitcoin the biggest beneficiary asset.

Hayes notes that Bitcoin has recently lagged behind other assets as liquidity flowed into the AI industry. However, he believes Bitcoin is building a base in the $60,000 to $70,000 range, with $50,000 likely to serve as strong support even in a sharp downturn.