BitMEX Founder Arthur Hayes Exits All Altcoins, Predicts AI Bubble Will Tank Crypto

TLDR

Table of Contents

BitMEX co-founder Arthur Hayes has liquidated his entire altcoin portfolio, including positions in NEAR, Hyperliquid, and Worldcoin
Hayes argues that artificial intelligence investments represent a bubble that will collapse between 2027 and 2028
He cautions that Bitcoin will not serve as a protective asset when the AI investment bubble bursts
Hayes forecasts massive central bank money printing following the AI crash, ultimately driving Bitcoin to $1 million
His current strategy involves holding only Bitcoin for the long term while parking liquidity in US Treasury Bills

Arthur Hayes, co-founder of cryptocurrency exchange BitMEX, has completely liquidated his altcoin holdings and is sounding the alarm that the ongoing artificial intelligence investment mania could severely damage cryptocurrency markets when it implodes.

Arthur Hayes: Selling Altcoins Because the AI Trade is About to Peak
On June 13, 2026, Arthur Hayes @CryptoHayes stated in an interview with Cointelegraph that he had liquidated his altcoin positions, including HYPE, NEAR, and Worldcoin. Reflecting on his previous macro… pic.twitter.com/LCM4PgRuCp
— Wu Blockchain (@WuBlockchain) June 21, 2026

Hayes shared these perspectives during a recent Bankless podcast episode and follow-up interview, articulating his thesis that AI has diverted capital flows from crypto and that the reversal of this trend will inflict significant pain on digital asset markets.

Hayes Liquidates Altcoin Holdings

Hayes revealed he has completely closed out his positions in Near Protocol, Hyperliquid, and Worldcoin, among other altcoins. According to Hayes, the risk-reward profile had shifted unfavorably.

He characterized his current strategy as being “permanently Bitcoin long,” while maintaining liquidity in US Treasury Bills to generate yield.

His departure from AI-related cryptocurrency tokens is being interpreted by market participants as a bearish signal. Both Near Protocol and Worldcoin operate at the intersection of artificial intelligence and blockchain technology, making his exit from these positions particularly notable as it suggests Hayes anticipates a broader collapse of the AI-crypto narrative rather than simple sector rotation.

Interestingly, Hayes indicated he would allocate any fresh capital to Ethereum over Bitcoin, describing it as offering superior value at present price levels.

The Coming AI Bubble Burst

Hayes drew parallels between today’s AI investment euphoria and the 19th century railroad expansion boom. He highlighted that companies are using faulty depreciation assumptions for AI hardware, projecting five to six-year lifespans for chips that become obsolete within two years.

He anticipates this accounting disconnect will create severe market dislocation by 2027 or 2028, potentially triggering a credit crisis exceeding the 2008 mortgage meltdown in scale.

Hayes identified three primary risk factors. First, escalating energy expenses threaten the economic viability of AI business models. Second, regulatory or policy headwinds from the US government could emerge unexpectedly. Third, the anticipated public offerings of Anthropic and OpenAI will vacuum up massive institutional capital, leaving crypto and other speculative assets starved for funding.

He argued that AI has essentially suffocated crypto’s capital inflows. With AI stocks delivering 20x returns in mere months, institutional investors see little compelling reason to allocate to Bitcoin.

Bitcoin Won’t Provide Shelter

Despite maintaining a bullish long-term outlook on Bitcoin, Hayes cautioned that it will not escape damage when the AI investment bubble deflates. He predicted Bitcoin would be “thrown out with the bathwater” during a widespread risk-off market event.

His projection is that monetary authorities will respond to an AI sector collapse with aggressive money printing. This liquidity injection, he contends, will ultimately find its way into Bitcoin since capital cannot return to a discredited AI sector.

This scenario forms the foundation of his forecast that Bitcoin will eventually reach $1 million. However, he emphasizes that the journey involves navigating through a severe downturn first.

AI-related assets have been capturing capital even within cryptocurrency markets. AI-focused BRC-20 NFTs recently generated $17.8 million in weekly trading volume, demonstrating how the AI narrative has redirected attention and investment away from layer-1 blockchain tokens and decentralized finance protocols.

Hayes has exited this trade entirely. Whether other sophisticated investors will follow his lead before market sentiment shifts remains uncertain.