Arthur Hayes Predicts AI Bubble to Burst by Late 2027, Bitcoin to Hit $50K on August 5

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According to Arthur Hayes on August 5, the BitMEX co-founder and Maelstrom head predicted in his essay "Situationship" that the AI infrastructure investment boom resembles a real estate buildout rather than a traditional technology cycle, with the bubble likely bursting around mid-to-late 2027. Hayes argues that hyperscalers treating data centers as depreciating physical assets—not growth businesses—have created a capital misallocation echo of the 2008 subprime crisis. He expects any resulting monetary easing to fuel a Bitcoin recovery from a potential $50,000 floor, and set a year-end 2026 target of $5,000 for Ethereum.
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