Arthur Hayes Predicts AI Bubble Burst Will Impact Crypto Market
Arthur Hayes, co-founder of BitMEX, has expressed concerns about the potential bursting of the AI bubble and its impact on the cryptocurrency market. In his article "Reality Test," Hayes argues that rising oil prices, driven by US-Iran tensions, are increasing energy costs and affecting AI companies' profitability. He warns that the upcoming IPOs of major AI firms like SpaceX, Anthropic, and OpenAI are overvalued, which could lead to a market correction.
Hayes also suggests that political factors, such as Trump's potential anti-AI stance during an election year, could exacerbate market instability. In response, Hayes' fund, Maelstrom, has liquidated positions in several cryptocurrencies, including HYPE, NEAR, WLD, and ZEC, while maintaining holdings in Bitcoin and Ethereum. Despite short-term pressures, Hayes remains optimistic about Bitcoin's long-term prospects, anticipating a rise following post-crisis liquidity easing.
