Bitcoin is poised to benefit from excess liquidity generated by the AI credit cycle. Arthur Hayes argues that while the AI bubble resembles 2008 credit dynamics, the cycle is not yet over and the resulting liquidity will flow into crypto. Bitcoin's bottom may already be in, downside is limited, and it has room to rise.
Ethereum is undervalued relative to Bitcoin and has a superior technical setup. Tokenization trends will inevitably move to public chains like Ethereum, and its adoption removes career risk for institutional gatekeepers. Combined with the same AI liquidity tailwind, ETH is well-positioned to catch up to BTC's gains.