Slowdown in US AI Sector Could Boost Bitcoin Prices, Says BitMEX Co-Founder

Arthur Hayes, co-founder of BitMEX, believes that a potential slowdown in the US AI sector could have a positive impact on the price of Bitcoin (BTC).

In his blog post, Hayes noted that weakening demand for AI computing power could make debt risks associated with data centers more visible. This, he argued, could lead to developments where the US government might provide liquidity to support the AI sector or bail out insurance companies exposed to distressed assets.

Hayes suggested that this would involve injecting more money into the economy, increasing the money supply, which in turn could positively affect Bitcoin and some altcoin prices. However, he emphasized that this is not a direct increase in demand for BTC but rather the pressure on the financial system leading policymakers to provide more liquidity.