Bitcoin Will Explode Over 3400%, According to BitMEX Founder Arthur Hayes – Here’s Why
BitMEX co-founder and crypto veteran Arthur Hayes predicts an explosive rally will push Bitcoin (BTC) to $1 million.
Hayes says his 368,300 Twitter followers that Bitcoin will see a gain of more than 3,400% from its current value of $28,179 due to changes in the Federal Reserve’s monetary policy.
He predicts that US Federal Reserve Chairman Jerome Powell will have to start cutting interest rates after sharp increases to bring down inflation to counter recession worries.
Hayes says the rate cuts will act as the catalyst to send Bitcoin’s price soaring. Bitcoin’s price has generally done well as more liquidity enters the markets.
“The faster Powell goes, the faster he has to cut. I will buy all dips in BTC. Thanks sir for more entry points.
BTC = 1 million dollars
Bank term funding program = Yield Curve Control.”
Hayes has said that the Bank Term Funding Program (BTFP), which the Fed announced this month to provide liquidity to struggling US banks, is another injection of liquidity into the markets that will help drive Bitcoin’s price higher.
He believes the BTFP is similar to the injection of stimulus funding the Fed released during the COVID pandemic, where Bitcoin hit an all-time high (ATH) of $69,045.
He tracks that the Fed will also engage in yield curve control (YCC), a type of monetary policy where the government buys bonds to limit long-term interest rates to a specific target.
“[US Treasury Secretary Janet] Yellen is off to a very slow start on the road to Yield Curve Control. Welcome to the start of economic oppression. You can either be a sucker or a saint when it comes to your capital city. Treat your capital well and it will treat you well.
BTC = 1 million dollars.”
Hayes made a similar prediction for Bitcoin in reaction to recent monetary policy changes in China with the People’s Bank of China reducing its Reserve Ratio Requirement (RRR) by 0.25%.
He said he believes China’s move is a sign of an influx of capital coming to the markets. The RRR is the amount of reserves that a commercial bank must maintain as a percentage of its deposits, and when it is lowered, it increases the amount that commercial banks can lend or invest.
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Featured image: Shutterstock/Andrey Suslov/Nikelser Kate
