Arthur Hayes Sees Crypto Bull Run Beyond AI Security Fears

On October 8, 2026, BitMEX co-founder and Maelstrom Chief Investment Officer Arthur Hayes shared a positive outlook for the crypto market. He argued that anxiety surrounding artificial intelligence breaking encryption is just another temporary hurdle for digital assets to overcome.

Around the time of his comments, BitcoinBTC+0.58% traded at $82,961 (+0.50%) and EthereumETH+0.79% hovered near $2,508 (+0.76%). However, past performance of digital assets is not an indication of future results, and market trends can shift rapidly. Investors can track real-time asset data on bitkub.com/th/market/BTC.

Understanding the AI Wall of Worry

In financial markets, analysts often talk about climbing a wall of worry. This phrase describes a series of fears that markets must push through before prices can move higher.

Hayes labeled current fears about AI breaking encryption as simple FUD (Fear, Uncertainty, and Doubt). To put today's worries into perspective, he compared them to three major disruptions from earlier market cycles:

• The 2017 Bitcoin block-size disputes over transaction capacity limits.
• The global economic shock caused by the 2020 pandemic.
• The 2022 collapse of crypto exchange FTX alongside rising interest rates.

In each past instance, the crypto ecosystem faced deep uncertainty but ultimately recovered as broader economic liquidity factors took center stage.

How Money Printing Could Fuel the Market

The core of Hayes' thesis rests on global liquidity, which measures the availability of money and credit across the financial system. When governments step in to manage borrowing costs, extra capital often flows into risk-on assets like crypto.

In an essay published on August 24, Hayes highlighted expanded U.S. Treasury bond repurchases, also known as buybacks. When the Treasury buys outstanding government debt securities, it helps control yields.

While Treasury buybacks are distinct from traditional Federal Reserve asset purchases, Hayes believes their effect on yields creates a favorable backdrop for speculative investments like Bitcoin.

The AI-Bust Scenario and Multitrillion-Dollar Bailouts

Beyond routine Treasury operations, Hayes outlined a more dramatic scenario involving the AI industry itself. In an interview published on October 2, he predicted a potential AI bust around 2027 or 2028 when massive data-center financial commitments fall due.

If heavily funded AI infrastructure encounters financial distress, Hayes expects policymakers to respond with multitrillion-dollar support packages. He believes this creation of new fiat money will ultimately benefit digital assets.

Money shall be printed, bags shall pump.

It is worth noting that this prediction depends on specific economic conditions, including central bank intervention. If central banks instead tighten liquidity or if global economic headwinds persist, digital asset prices could face downside pressure rather than a rally.

Security Experts Push Back on AI Encryption Threats

While Hayes dismissed AI security fears on macro grounds, cryptography experts have also challenged the technical claims behind the anxiety.

Yehuda Lindell, Head of Cryptography at Coinbase (Nasdaq: COIN), publicly disputed claims that AI is on the verge of breaking crypto math. He stated that there is no scientific evidence showing AI can overcome core cryptographic principles like digital signatures.

At the same time, AI tools are proving useful for finding routine code defects. A security researcher recently used AI-assisted analysis to uncover a software flaw in Zcash's shielded transaction system.

Crucially, this was an implementation bug in the software code, not a failure of the underlying mathematical cryptography. Developers patched the issue within days of discovery.

Broader Signals Point to Onchain Growth

Other industry executives share a constructive medium-term view. Bitwise Chief Investment Officer Matt Hougan recently pointed to stronger Bitcoin price momentum, solid spot ETF inflows, and rising institutional participation as positive structural indicators.

Platforms like HyperliquidHYPE+1.31% and Robinhood continue expanding their onchain finance capabilities, bridging traditional financial services with blockchain infrastructure.

While expanding adoption builds a stronger foundation for the industry, crypto markets remain inherently volatile. Investors should carefully evaluate macroeconomic risks and individual token fundamentals before making financial decisions.