Bitcoin's Next Cycle Will Be Fueled by AI Bubble Burst
Arthur Hayes, co-founder of BitMEX and Maelstrom Chief Investment Officer, has predicted that Bitcoin (BTC) will reach $1 million at the peak of its next cycle. He also foresees Ethereum (ETH) reaching between $100,000 and $200,000 during this time.
Hayes believes a collapse of an 'AI bubble' is necessary to trigger a financial crisis bigger than the 2008 subprime crash. The AI capital expenditure, he notes, could be larger than the money spent building out railways as a share of global GDP in the 19th century.
The AI investment frenzy has drained liquidity away from Bitcoin and other risk assets, Hayes claims. He expects that when the AI trade unwinds, all risk assets will likely fall in a correlated sell-off, marking Bitcoin's real bottom before another rebound.