BitMEX co-founder Arthur Hayes urged traders on X to buy Bitcoin (BTC) and Ethereum (ETH) rather than bet on an AI crash. Hayes paired the call with a chart showing CoreWeave's falling stock. Hayes said he would not bet on AI rising or falling. Instead, Hayes expects a multi-trillion-dollar bailout and wants exposure to assets that could absorb the resulting money.
Hayes argues that every major technology rollout leads to overbuilding, a crash and then a rescue. Hayes expects the AI data center boom to crash around late 2027 or 2028. Hayes expects authorities to print more money for the rescue than after the 2008 financial crisis. Hayes argues that Bitcoin and other crypto would absorb that liquidity, lifting Bitcoin to $1 million or more. Hayes prefers waiting for the rescue to trying to predict the crash's timing.
The 2020 pandemic rescue supports the idea. Bitcoin rose from under $5,000 to above $60,000 as the Federal Reserve more than doubled its balance sheet. However, the relationship between money supply and Bitcoin has weakened lately. US money supply reached a record in August, yet Bitcoin trades about 35% below its October 2025 peak. A similar divergence between money supply and Bitcoin prices appears globally. Bitcoin and Ethereum have also underperformed most AI stocks in 2026.
Fundstrat co-founder Tom Lee argues that AI resembles 1997 rather than 1999. Lee places an AI bubble peak near 2033, rather than expecting an imminent collapse.
AI cloud provider CoreWeave plunged 15% a day after CNBC host Jim Cramer named CoreWeave as Cramer's only trusted AI cloud pick. The decline intensified broader concerns about AI debt. Hayes claimed in a September newsletter that major US insurers were insolvent when AI debt was valued at market prices. The debate among crypto traders is shifting from whether AI shares will fall to who would pay if AI shares fall. Hayes is betting that governments would print money to fund a rescue, with Bitcoin and Ethereum serving as hedges.
Arthur Hayes Predicts AI Crash and Bitcoin Rally Amid Potential Trillion-Dollar Bailout
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Summary
Bitcoin news broke as Arthur Hayes, co-founder of BitMEX, advised traders to buy Bitcoin and Ethereum rather than bet on an AI crash. He expects a multi-trillion-dollar bailout after the AI data center boom collapses by 2027 or 2028, with Bitcoin absorbing the liquidity. Bitcoin analysis shows recent performance has diverged from money supply trends. CoreWeave fell 15% after being mentioned by CNBC’s Jim Cramer, raising concerns about AI debt. Hayes claims major U.S. insurers are insolvent at current AI valuations, shifting the debate to who would cover losses if AI shares fall.
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