Hayes Warns AI Boom Is 'Lehman, Not Apple', Predicts $1M Bitcoin by 2028

Arthur Hayes, co-founder of BitMEX, has made some bold predictions about the future of Bitcoin and Ethereum. In his latest essay, 'Situationship,' Hayes argues that the current AI spending boom is a credit bubble that will eventually burst around 2027-2028.

According to Hayes, the bubble will pop when data center construction growth slows or hyperscaler forward guidance decelerates, putting pressure on the balance sheets of over-leveraged holders of AI-related debt. He estimates this moderation will become evident by 2028.

Hayes predicts that China and the United States will eventually step in to bail out over-leveraged AI companies and their financiers on national security grounds, injecting trillions into financial markets. This wave of liquidity will eventually send Bitcoin to $1 million.

In the short term, Hayes expects Bitcoin to consolidate between $60,000 and $70,000, with a possible low of $50,000 before hitting a bottom. He also sees Ethereum reaching $5,000 by the end of 2026.