The private credit market is under significant pressure as concerns grow over AI's impact on software companies' revenues. Morgan Stanley forecasts a rise in default rates in direct lending to 8%, while Fitch Ratings reports a US Private Credit Default Rate of 5.8%, the highest since August 2024. Major private credit managers like Apollo, Blackstone, and Blue Owl have seen stock prices plummet, with $265 billion in market cap erased. Amidst this turmoil, macro analysts suggest that the US may resort to printing money due to AI-driven job losses and tightening lending conditions. This scenario could benefit Bitcoin, as investors seek non-sovereign assets to hedge against currency debasement. Bitcoin has already gained 10.87% since late February, outperforming traditional markets amid geopolitical tensions, highlighting its potential as a hedge in uncertain times.