Arthur Hayes warns AI infrastructure boom could lead to crash and Bitcoin rally

Arthur Hayes, former CEO of BitMEX and co-founder of Maelstrom, has warned that the massive global investment in artificial intelligence infrastructure could lead to an economic bubble and subsequent crash. Speaking at an investment conference in Singapore, Hayes noted that trillions of dollars are currently being poured into data centers and computing power, potentially creating a surplus of infrastructure that exceeds actual demand.

Hayes anticipates that this cycle of over-investment could reach a breaking point between late 2027 and 2028. He suggests that, following historical economic patterns, a crash resulting from such excess would likely trigger government or central bank interventions and massive liquidity injections to stabilize the economy.

In this scenario, Hayes believes Bitcoin and the broader cryptocurrency market could benefit significantly by absorbing the excess liquidity. However, he noted a potential risk for Bitcoin miners who have already pivoted their infrastructure toward AI computing and sold portions of their holdings to fund these transitions.