Arthur Hayes: AI Bubble Burst Will Trigger Super Money Printing and Spark Bitcoin's Next Bull Market

AI took all the money. That's why one of the most-watched macro voices in crypto says that Bitcoin's been slow to catch on, despite the years of institutional adoption.

One of the prominent crypto hedge fund macro investors has outlined a two-part thesis on how the AI markets will converge with Bitcoin's next big move.

His claim: Between September 2022 and now, there's been $1.5 trillion in AI debt issued, which's close to the growth in U.S. money supply over that same time span. That printed money went into data centres and GPU clusters, rather than crypto, he said.

His perception is that the result of concentration is an unhealthy market structure. He anticipates that Bitcoin will suffer a short-term blow if AI valuations will come under pressure as energy prices increase and there is a wave of overpriced tech IPOs.

But he sees that the shock has caused central banks to become more aggressive in providing liquidity and stimulus, which may lead to a sharp rise in Bitcoin in the long run, to as high as $1 million from his camp.

He's allocated them in a manner that leaves him with Bitcoin and Ethereum as his key holdings while reducing his stake in several high-risk altcoins as a precaution.

Note that this is one person's macro thesis, not a given sequence of events; AI spending can also gradually settle down in the future.

The main concept to contemplate: don't simply move money around among sectors randomly, and realize that knowing where the liquidity is today is more indicative of Bitcoin's next move than just a technical chart.

Definitely not financial advice.

If the AI trade does cool off, do you think that capital actually rotates into Bitcoin, or does it just sit in cash?