AI Frenzy Blocks Bitcoin's Rally
Arthur Hayes, a well-known figure in the crypto space, shared his insights on why Bitcoin has been sluggish despite the expansion of global money supply. According to Hayes, the AI investment boom is not allowing fresh dollars to flow into cryptocurrencies like Bitcoin.
Hayes pointed out that the rise in dollar M2 has largely matched massive spending on AI companies and their supply chains. Instead of buying BTC, investors are pouring money into semiconductor manufacturers, AI hardware firms, and companies supporting the artificial intelligence ecosystem.
He compared today's AI frenzy to the way investors previously chased Apple's suppliers whenever Apple entered a new growth cycle. In his view, AI has simply become the market's dominant trade.