"War and AI Push Bitcoin Up" Arthur Hayes's Target Price for This Year is $126,000

▲ Iran, US, War, Bitcoin (BTC)/AI generated image ©

A groundbreaking forecast suggests that Bitcoin (BTC) will begin an unhindered surge towards an all-time high of $126,000, riding on the massive historical trends of geopolitical crises and the race for artificial intelligence (AI) hegemony.

According to investment media FXStreet on May 13 (local time), Arthur Hayes, Chief Investment Officer (CIO) of virtual asset investment fund Maelstrom, analyzed in a recent report that the Iran conflict and the race to dominate the AI industry will inevitably lead to an increase in currency issuance, bringing a liquidity party to the virtual asset market. Hayes emphasized that the US and China are in a situation where they must create a loose financial environment and print vast amounts of fiat currency to gain an advantage in AI technology, which is directly linked to national security, and that this environment will be a perfect catalyst for Bitcoin.

In particular, Hayes noted that war inherently causes inflation. The increase in military spending due to the conflict with Iran and the expansion of infrastructure investment within each country will ultimately lead to a decline in currency value, which further highlights the value of scarce BTC. He diagnosed that as politicians began to print money out of practical necessity, Bitcoin had already started to outperform major risk assets like gold and US tech stocks in terms of returns since late February.

Actual figures also support this claim. Bitcoin, which was $62,822 in early February, has now surged over 31% to around $81,000, showing strong resilience. In contrast, gold only rose about 2% during the same period, from $4,581 to $4,710, demonstrating a steep disparity in returns. Hayes asserted that Bitcoin, having confirmed a bottom near $60,000 earlier this year, is a given to break through its previous all-time high, riding on trillions of dollars in liquidity that will be created in the future.

Hayes predicted that Bitcoin's price trajectory would gain explosive acceleration the moment it breaks past $90,000. He analyzed that once this point is surpassed, a short squeeze (buying pressure occurring to liquidate or cover short positions) will emerge as investors who bet on a decline rapidly switch to buying to prevent losses, further driving up the price. He expressed strong confidence, stating that Bitcoin would stage an overwhelming rally while market skeptics retreated.

Ultimately, the global capital market is entering an era of indiscriminate currency supply to catch two rabbits: war and technological innovation. Experts evaluate that these macroeconomic changes are elevating Bitcoin from a mere speculative asset to the only alternative to defend against inflation and currency debasement. All eyes of investors worldwide are focused on whether Bitcoin can settle at the $126,000 mark as Hayes predicted, opening a new golden age for virtual assets.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*