Arthur Hayes Ties AI Bubble Size to Potential Bitcoin (BTC) Gains

BitMEX co-founder Arthur Hayes linked Bitcoin’s potential gains to the size of the artificial intelligence investment bubble, arguing the crypto asset could rise more if the boom grows larger.

Hayes made the comments on the Convergence program on Oct. 16. He said OpenAI, Anthropic and SpaceX were not profitable, and that AI model companies rely on debt and equity financing as well as implicit U.S. government support.

Hayes argued that a larger AI bubble could lead to larger rescue efforts, with Bitcoin gaining as a result. He described Bitcoin as a way to reflect wasteful spending. He also criticized token launches, saying retail buyers who enter at a token generation event and later see a 95% decline bear the loss.

The market backdrop included a 2.5% drop in the Nasdaq 100 and an eighth consecutive daily decline for chip stocks, the sector’s longest losing streak since 2008. Bitcoin traded near $81,400 on Oct. 17.