PANews reported on April 28 that Arthur Hayes, co-founder of BitMEX, expressed an optimistic outlook on Bitcoin at the Bitcoin 2026 conference. He believes AI will replace a significant number of knowledge workers, potentially resulting in hundreds of billions in credit losses for the banking system, akin to a 'new subprime crisis.' However, the U.S. has entered a wartime footing, with a new defense budget increasing by about 50% to $1.5 trillion, meaning the government won't cut spending but will instead print a massive amount of cash. The enhanced supplemental leverage ratio rules effective April 1 allow banks to hold less reserve and more treasuries, with S&P Global estimating this will unlock about $1.3 trillion in new loan capacity for the banking system, mainly for defense-related companies and AI infrastructure. The money multiplier effect for bank lending is around 3, which could ultimately create about $4 trillion in credit. Fed chair nominee Warsh plans to shrink the Fed's balance sheet while easing bank regulations, allowing commercial banks to take on treasuries and repo agreements. The net liquidity impact is neutral, but the money creation shifts from the central bank to commercial banks. The new credit generated will surpass the credit destroyed by AI, thus Bitcoin is expected to continue its upward trajectory, with a year-end target price of approximately $125,000.