Arthur Hayes Warns AI Stock Crash Could Hit Crypto Before BTC Rebounds
Arthur Hayes has turned defensive on risk assets, saying a potential AI stock bubble unwind could hit crypto before Bitcoin later benefits from a liquidity response. He argues higher oil prices from US-Iran tensions and Strait of Hormuz disruption could lift inflation, squeeze margins, and pressure AI equities, which have absorbed much of the new dollar liquidity this cycle. In his view, AI-related debt issuance has matched broad money growth, meaning “AI sucked up all created dollars,” limiting Bitcoin’s upside for now. Hayes expects any AI selloff to tighten credit, hurt speculative capital, and delay a crypto recovery until policymakers inject fresh liquidity. He sees possible triggers as rising energy costs, large AI-linked IPO supply, and political anti-AI rhetoric. Maelstrom has already cut several non-core crypto holdings and added energy exposure. Hayes kept Bitcoin and Ether, calling Ether “dead but functional,” and said Bitcoin’s eventual rebound depends on recovery after a broader market flush.
