AI Bubble Burst To Fuel Bitcoin Bull Run: Arthur Hayes

There is no denying the fact that the AI boom has led to substantial financial gains. Stock prices of AI-based companies and chip manufacturers have seen massive returns over the last year. While many anticipate the pattern to continue over the coming years as AI takes stronger hold over society, others are skeptical whether the growth can sustain itself. Prominent cryptocurrency advocate and analyst Arthur Hayes believes that an AI bubble burst could redirect funds into Bitcoin’s (BTC) market. Let’s discuss.

Will AI Bubble Burst Benefit Bitcoin?

In a recent Substack article, Hayes likens AI capital expenditure (AI CAPEX) to “boring real estate.” Hayes says that eventually, construction of data centers will slow down. The slow down will likely expose over-leveraged AI companies and weak borrowers and financiers. Hayes believes the government will step up in the name of “national security.” However, Hayes states, “misallocation of capital will find its way into crypto … pumping Bitcoin to da moon!“

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