'It’s Time To Shitcoin' – Arthur Hayes Says AI Arms Race, Money Printing Are Fueling The Next Crypto Bull Market

• The Maelstrom CIO encouraged investors to take on higher-risk crypto trades, highlighting NEAR, HYPE, and ZEC.
• Hayes stated that Bitcoin’s price reaching new highs is “a foregone conclusion” if global money printing continues.
• According to him, the U.S. and China are prioritizing AI infrastructure investment regardless of inflation concerns, which will raise liquidity and drive BItcoin higher.

Maelstrom Fund chief investment officer Arthur Hayes said on Tuesday that the combination of the global AI race, war-driven spending, and aggressive money printing is creating the “perfect environment for crypto,” forecasting that there’s a new speculative bull market ahead.

“The combination of the political will to win the AI race and the financial will to fund the build-out with printed money and bank loans produces the perfect environment for crypto,” Hayes wrote in his most recent newsletter on Substack.

According to the former BitMEX CEO, both the U.S. and China now see AI dominance as a national security priority, forcing governments to support huge spending on data centers, electricity generation, chips, and AI infrastructure regardless of inflation concerns.

Bitcoin, Liquidity And The Global AI Arms Race

According to Hayes, the scale of spending required to sustain the AI race will inevitably inject more liquidity into the global financial system through debt issuance, monetary expansion and government-backed lending programs. “There will be vastly more units of fiat tomorrow than today,” he said.

Hayes also stated that Bitcoin (BTC) reclaiming previous highs is “a foregone conclusion” if trillions of additional dollars and yuan continue entering the financial system.

“I expect the rally to intensify and the haters to cower in the corner as Bitcoin’s upward price trajectory turns explosive.” – Arthur Hayes, Co-founder and Chief Investment Officer, Maelstrom

Bitcoin’s price fell 1.4% in the last 24 hours to around $80,200. Retail sentiment around the apex cryptocurrency on Stocktwits trended in ‘neutral’ territory over the past day, accompanied by ‘normal’ levels of chatter.

Why Arthur Hayes Remains Bullish On ‘Shitcoins’ 

“It’s time to shitcoin,” Hayes wrote, adding that investors should lean into higher-risk crypto trades while the bull cycle remains intact. He stated that NEAR Protocol (NEAR) was one of his preferred speculative bets alongside Hyperliquid (HYPE) and Zcash (ZEC).

In midday trade on Monday, only NEAR was bucking the wider cryptocurrency market selloff. NEAR’s price gained 1.8% in the last 24 hours to around $1.55. Retail sentiment on Stocktwits around the AI-focused token trended in ‘extremely bullish’ territory, accompanied by ‘extremely high’ levels of chatter.

Meanwhile, HYPE’s price dropped nearly 3% in the last 24 hours to just above $40. Retail sentiment around the decentralized exchange on Stocktwits fell to ‘bearish’ from ‘neutral’ territory over the past day. Chatter stayed at ‘low’ levels. 

ZEC’s price also tumbled amid the broader market weakness, down nearly 2% in the last 24 hours to around $547. Retail sentiment around the privacy-focused token trended in the ‘bullish’ zone over the past day, accompanied by ‘extremely high’ levels of chatter. 

Retail traders on Stocktwits speculated over when ZCash’s next bull run may happen as the token defended $540.

Despite his bullish outlook, Hayes warned that the AI investment boom could eventually become excessive and trigger political backlash if inflation rises too sharply or the economic benefits fail to reach ordinary consumers.

For now, however, Hayes believes liquidity conditions remain strongly supportive for crypto markets. “It’s a bull market; close your eyes and press the button,” he wrote.

Read also: Michael Saylor Says CLARITY Act Markup Could Unlock ‘Next Wave’ Of Digital Capital

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