Arthur Hayes Warns AI is Fueling History’s Biggest Liquidity Bubble

Arthur Hayes, former BitMEX CEO, suggests that the global AI arms race has triggered a massive surge in fiat credit. As major software firms exhaust their operating cash flow, the massive capital expenditure required for AI infrastructure must increasingly be funded through bank credit and central bank support, creating a significant liquidity bubble.

This trend is framed as a matter of national security, with both the US and China steering financial resources toward technology. High-profile figures like David Sacks note that AI spending is becoming a primary driver of GDP growth. Furthermore, the US Department of Defense has solidified this narrative by signing major AI deployment deals with companies including Google, Microsoft, and OpenAI.

Hayes believes Bitcoin is the primary beneficiary of this expanding fiat supply. He predicts that as long as the credit-driven expansion continues, the path of least resistance for Bitcoin is upward, eyeing a target of $126,000, provided no major political or economic shifts occur.

(Source：BeInCrypto)