BitMEX Founder Arthur Hayes Explains That the Slowdown in AI Growth in the US Will Support the Bitcoin Price! Here Are the Details

BitMEX co-founder Arthur Hayes suggested that a slowdown in the AI sector in the US could support the price of Bitcoin (BTC) in the long term. According to Hayes, a potential slowdown in the AI sector could trigger developments leading to an expansion of the money supply in the US.

In a blog post, Hayes noted that weakening demand for AI computing power could make debt risks associated with data centers more visible. He specifically stated that debt used to finance investments in AI infrastructure could create new risks if growth in the sector slows.

Hayes argued that in such a scenario, the US government might consider providing liquidity to support the AI sector or to bail out insurance companies exposed to distressed assets. In either case, he noted, this would involve injecting more money into the economy, increasing the money supply.

The co-founder of BitMEX suggested that Bitcoin and some altcoin prices could be positively affected if the money supply expands. Hayes’ assessment focuses on the potential connection between developments in the artificial intelligence sector, global liquidity conditions, and cryptocurrency markets.

The key element in Hayes’ scenario is not that a slowdown in the AI sector will directly increase Bitcoin demand, but rather that the pressure it could put on the financial system might lead policymakers to provide more liquidity. However, this approach reflects Hayes’ view of economic and market conditions; potential policy actions or their impact on the Bitcoin price are not considered certain developments.

*This is not investment advice.