Arthur Hayes Forecasts Bitcoin Surge Driven by Potential AI Debt Crisis Bailouts

Bitcoin traded near $85,700 following a 6% advance, even as the Federal Reserve lifted interest rates to 3.75%-4%. Former BitMEX CEO Arthur Hayes outlined a macroeconomic thesis asserting that slowing AI growth and debt strains will ultimately catalyze a major Bitcoin rally. Hayes argues that the vast debt financing backing AI infrastructure—projected by Apollo to reach $5 trillion by 2030—could trigger private credit defaults and threaten US insurers holding $1.54 trillion in affiliated reinsurance. Hayes expects any resulting distress to force government bailouts and monetary liquidity expansion, driving capital into Bitcoin.