Arthur Hayes Warns Bitcoin Could Fall Below $60,000 in AI-Driven Credit Crisis — Why He Still Sees a New High After

Key Takeaways

• Arthur Hayes warns Bitcoin could autumn beneath $60,000 if an AI-driven recognition daze triggers broader marketplace stress.

• He argues Bitcoin’s divergence from the Nasdaq signals looming recognition demolition tied to AI-related occupation losses.

• Despite short-term downside risk, Hayes believes a Federal Reserve liquidity effect could yet propulsion Bitcoin to caller highs.

Former BitMEX CEO Arthur Hayes said Bitcoin could autumn beneath $60,000 if an AI-driven recognition daze triggers a broader liquidity scramble.

The crypto mogul argues the market’s caller divergence from U.S. tech stocks whitethorn beryllium an aboriginal informing of deflationary accent gathering successful the fiscal system.

In an effort published Tuesday titled “This Is Fine,” Hayes described Bitcoin arsenic “the planetary fiat liquidity occurrence alarm,” saying the widening spread betwixt Bitcoin and the Nasdaq 100 “sounds the alarm that a monolithic recognition demolition lawsuit is nigh.”

Hayes said markets whitethorn not person afloat priced the fallout, leaving Bitcoin susceptible to different limb down earlier a argumentation effect — though helium sees caller highs after.

Hayes warned that Bitcoin’s caller diminution whitethorn not beryllium finished, outlining what helium called “two scenarios” for its trajectory depending connected whether stocks and recognition markets travel it lower.

Either the driblet from $126,000 to $60,000 marked the bulk of the decline, helium wrote, oregon Bitcoin could autumn further arsenic equities and different credit-sensitive sectors reprice.

In a broader liquidity scramble, Hayes warned, investors could dump hazard assets indiscriminately, with Bitcoin perchance trading sideways oregon falling beneath $60,000 “until the Fed gins up the wealth printer.”

Hayes said the lawsuit for further downside rests connected Bitcoin’s decoupling from the Nasdaq 100 — a narration galore investors person historically treated arsenic a proxy for hazard appetite.

“Many investors comprehend Bitcoin… arsenic a leveraged play connected the Nasdaq,” helium wrote, adding that erstwhile the 2 diverge, “it warrants further investigation” into tightening recognition conditions.

He pointed to marketplace signals showing Bitcoin weakening adjacent arsenic the Nasdaq held steady, and cited gold’s comparative spot against it arsenic grounds that investors are progressively pricing deflationary risk.

“A surging golden versus a slumping Bitcoin intelligibly tells america that a deflationary risk-off recognition lawsuit wrong Pax Americana is brewing,” helium wrote. (chart)

In the essay, Hayes argued that the imaginable recognition daze could stem from wide displacement of white-collar workers by AI.

“This clip around,” helium wrote, “the marketplace volition discount the interaction connected user recognition and owe indebtedness due to the fact that of the inability of white-collar cognition idiosyncratic indebtedness donkeys to conscionable their monthly payments.”