Arthur Hayes, co-founder of BitMEX, is advising investors to open long positions in Bitcoin and Ethereum. He suggests that these assets will serve as a hedge against future government liquidity injections, rather than betting on a potential collapse in the artificial intelligence sector.
Hayes anticipates that the current boom in AI data centers will face a correction between late 2027 and 2028. Following this, he expects authorities to implement a multi-trillion-dollar bailout, exceeding the scale of the response to the 2008 financial crisis. He predicts this influx of new capital will drive the price of Bitcoin toward $1 million.
The investor points to historical precedents, such as the 2020 pandemic response, where the Federal Reserve doubled its balance sheet, leading to a rise in Bitcoin from under $5,000 to over $60,000. However, he acknowledges that the correlation between money supply and crypto prices has recently weakened, as Bitcoin remains 35% below its October 2025 peak.
Market sentiment remains divided regarding the timeline for an AI sector downturn. While Hayes focuses on the potential for government-funded bailouts, Tom Lee of Fundstrat suggests that the AI bubble may not peak until 2033. Meanwhile, concerns over AI-related debt have intensified, highlighted by a 15% drop in CoreWeave stock following public commentary.
