Hayes Sees AI Boom as Lehman-Like Credit Bubble Threatening Bitcoin

Arthur Hayes, former CEO of BitMEX, has issued a warning about the current AI boom. He believes it's creating a credit bubble that could burst in the next few years.

Hayes argues that lenders are treating investments in AI infrastructure as safe and secure, similar to lending to Apple, but actually taking on too much risk like lending to Lehman Brothers before its collapse.

He expects this bubble to burst around 2027-2028, leading to a massive injection of liquidity into the financial markets. This could eventually drive Bitcoin's price up to $1 million.

In the short term, Hayes predicts that Bitcoin will consolidate in the range of $60,000 to $70,000 before hitting a bottom. He also sees Ethereum reaching $5,000 by the end of 2026.