Will Bitcoin Soar If the 'AI Bubble' Bursts?... Predictions Suggest It Could Surpass $1 Million

Photo = ChatGPT [Financial News] A forecast has emerged that Bitcoin could surpass $1 million if the enthusiasm for artificial intelligence (AI) infrastructure investment cools down. The analysis suggests that funds flowing into data centers and power infrastructure are fueling credit instability, and that subsequent government liquidity injections could lead to a Bitcoin rally.
According to industry sources on the 5th, Arthur Hayes, co-founder of BitMEX, diagnosed AI infrastructure investment as a credit bubble on the newsletter platform Substack. He predicted, "The investment frenzy centered on AI data centers and power infrastructure is taking on the characteristics of a credit bubble," adding, "If the government steps in to supply a large amount of money to stabilize the financial situation after the bubble bursts, the price of Bitcoin could break through $1 million.
" Hayes viewed the current AI infrastructure investment as similar to real estate development projects that rely on borrowing. He explained that since a massive amount of funding for data center construction has been supplied through the banking and private lending markets, related credit could deteriorate rapidly if the growth in investment slows down.
Regarding the current overheating of AI investment, Hayes assessed that it bears similarities to the 2008 financial crisis. His interpretation is that just as a slump in the real estate market led to financial sector insolvency, a slowdown in the pace of data center expansion could result in the default of AI-related loans. While stating, "I am not denying the growth potential of the AI ​​industry itself," Hayes predicted that "investment will begin to slow down starting in 2027, and the side effects of overinvestment will intensify in 2028.
" Hayes also raised the possibility that the government might step in to support AI companies and the financial sector following the collapse of the bubble. He projected, "If the value of the dollar falls and market liquidity increases during this process, Bitcoin will be the first asset to react.
" The founder, Hayes, also viewed the price outlook for Ethereum positively. It was predicted that the Real Asset Tokenization (RWA) business of traditional financial institutions, such as Robinhood, is highly likely to grow centered on the Ethereum ecosystem, and that the target price of Ethereum could reach $5,000 by the end of this year.


[email protected] Han Seung-gon Reporter