AI Frenzy Trumps Bitcoin as Market's Top Capital Magnet

Arthur Hayes believes that Bitcoin's sluggish performance is not due to a lack of liquidity but rather the AI investment boom, which has become the market's biggest capital magnet. Speaking with Bonnie Blockchain on June 26, Hayes explained why Bitcoin continues to lag even as global money supply expands.

Hayes pointed out that the rise in dollar M2 has been largely matched by massive spending on AI companies and their supply chains. Instead of buying Bitcoin, investors are pouring money into semiconductor manufacturers, AI hardware firms, and companies supporting the artificial intelligence ecosystem.

Hayes 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.