Arthur Hayes, co-founder of BitMEX, believes a $1.5 trillion credit bubble has formed in the artificial intelligence sector, with lenders financing GPUs over 5-6 year terms while these components become obsolete in 2-3 years. Between November 2022 and mid-2026, approximately $1.5 trillion in AI-related debt was issued, with 75-80% of that amount raised in 2025 alone. According to Hayes, this massive absorption of liquidity by AI infrastructure has prevented these funds from flowing into risk assets like Bitcoin. When this credit bubble bursts, central banks will need to inject massive liquidity to prevent systemic collapse, which could send Bitcoin to $1 million. Hayes places this anticipated stress point between late 2027 and 2028, projecting Ethereum could reach between $100K and $200K during on-cycle peaks.
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