- Arthur Hayes believes expanding U.S. and Chinese liquidity will drive Bitcoin higher toward the $126,000 level.
- Hayes linked Bitcoin’s bullish outlook to growing AI infrastructure spending, military expansion, and credit creation.
- The BitMEX co-founder said Bitcoin already formed its cycle bottom near $60,000 earlier this year.
Bitcoin has already completed its correction near $60,000 and now looks positioned for a move toward $126,000, according to BitMEX co-founder Arthur Hayes. In his May 11 essay titled “The Butterfly Touch,” Hayes linked Bitcoin’s outlook to rising AI spending, global military expansion, and accelerating liquidity injections from both the United States and China.
Hayes Connects Bitcoin to Global Liquidity
According to Arthur Hayes, governments and corporations are entering another major credit expansion cycle. He argued that increased spending on AI infrastructure, semiconductors, energy systems, and military equipment will inject more dollars and yuan into the global economy.
Hayes stated that Bitcoin historically benefits when liquidity conditions expand. He added that Bitcoin reclaiming $126,000 is now “a foregone conclusion.”
Additionally, Hayes claimed Bitcoin already established its cycle bottom near $60,000 earlier this year. He tied the beginning of the recovery phase to geopolitical tensions following the U.S. strike on Iran on Feb. 28.
Meanwhile, Hayes said Bitcoin has recently outperformed gold, major technology stocks, and the Nasdaq 100 since that period.
AI Spending and War Costs Drive Thesis
Hayes built much of his outlook around artificial intelligence spending. He argued that governments and technology firms now view AI as a strategic competition between the U.S. and China.
According to Arthur Hayes, that race requires massive infrastructure investment funded through lending and monetary expansion. He added that banks and central banks will likely continue supporting those capital flows.
At the same time, Hayes pointed to rising military expenditures and commodity stockpiling as additional inflationary pressures. He said countries may increasingly prioritize strategic assets over sovereign debt holdings.
Furthermore, Hayes argued that the current global system remains heavily dependent on U.S. financial dominance and dollar liquidity.
Maelstrom Expands Crypto Positioning
Hayes also disclosed that his family office, Maelstrom, currently holds large positions in HYPE and ZEC. He added that NEAR is becoming the next major focus for deployment.
Meanwhile, Hayes believes Bitcoin crossing $90,000 could accelerate market momentum sharply. According to him, that move may force traders and short sellers to reposition quickly.
Despite previous forecasting misses, Hayes maintained that expanding fiat supply continues supporting scarce digital assets like Bitcoin.
