BitMEX co-founder Arthur Hayes says Bitcoin (CRYPTO: BTC) 50% drawdown reflects growing fears of an AI-driven credit shock rather than weakness in the crypto market itself.
Bitcoin’s AI-Triggered Credit Destruction
Hayes argued in an interview with Cointelegraph that the decline reflects a broader macro risk tied to artificial intelligence and global geopolitics.
Markets may be underpricing geopolitical risk from the escalating tensions between the U.S. and Iran, although his central thesis focuses on what he calls AI-triggered credit destruction.
Hayes’ argument: widespread AI adoption could displace large numbers of high-income white-collar workers, creating a credit shock across the economy.
According to Hayes, policymakers at the Federal Reserve currently view AI primarily as a productivity boost and are not preparing for the potential credit fallout, a risk he says markets and Bitcoin are beginning to price in.
Hayes’ Top Crypto Bet For 2026
Despite recognizing AI’s long-term potential, Hayes is avoiding AI-related equities.
He compared the current investment boom to past infrastructure bubbles, such as the railroad expansion era and the late-1990s fibre-optic buildout, where heavy capital spending ultimately produced weak investor returns.
Looking ahead to 2026, Hayes said his highest-conviction crypto trade is Hyperliquid (CRYPTO: HYPE).
He predicts the token could reach $150, citing the project’s strong revenue generation and token-holder reward model as key factors supporting its long-term growth.
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