TL;DR

Arthur Hayes believes AI infrastructure spending has absorbed a significant share of global liquidity, limiting the amount of capital flowing into Bitcoin despite ongoing monetary expansion.
AI companies have raised roughly $1.5 trillion in financing since late 2022, according to Hayes, creating strong competition for investment capital that could have entered crypto markets.
Bitcoin’s long-term outlook remains positive, as institutional adoption, ETF demand and its fixed supply continue to support the asset despite short-term liquidity challenges.

Bitcoin remains one of the strongest-performing assets of the current cycle, but Arthur Hayes believes the market has been competing against an unexpected rival for investor capital. According to the crypto entrepreneur, the rapid growth of the artificial intelligence sector has diverted liquidity that might otherwise have supported a stronger Bitcoin rally.

In a recent analysis, Hayes revisited his long-standing view that cryptocurrency prices are heavily influenced by fiat liquidity. While money supply expansion remains an important factor, he now argues that understanding where new capital is allocated is equally important for explaining Bitcoin’s recent performance.

Bitcoin And The AI Capital Race

Hayes noted that Bitcoin recovered significantly from the lows recorded after the collapse of FTX, rising from around $15,000 in late 2022 to new all-time highs during the current market cycle. However, several AI-linked companies delivered even stronger returns over the same period.

One of the most cited examples is Nvidia, whose stock surged as demand for advanced AI chips accelerated worldwide. The company became one of the world’s most valuable publicly traded firms as data center investment expanded rapidly.

According to Hayes, many investors expected rising liquidity levels to benefit Bitcoin more directly. Instead, large amounts of capital were directed toward AI-related projects, including semiconductor production, cloud infrastructure, energy generation and data center construction.

Growing Demand For Infrastructure Funding

The former BitMEX executive described artificial intelligence as one of the most capital-intensive sectors in the global economy. Unlike many software businesses, AI development depends on physical infrastructure, computing power and energy-intensive operations.

Hayes estimates that AI-focused companies have raised roughly $1.5 trillion through debt issuance and financing activities since late 2022. In his view, this figure is comparable to the increase in U.S. money supply during the same period, suggesting that a substantial share of newly created liquidity has been absorbed by the AI sector.

Even so, the crypto advocate remains constructive on Bitcoin’s long-term outlook. He argues that Bitcoin continues to benefit from monetary expansion, growing institutional participation and its position as a scarce digital asset. The increasing adoption of spot Bitcoin ETFs and continued accumulation by public companies also support the broader investment case.