Bitcoin may rally soon, says former BitMex boss
Doom Loop Time! The doom loop, according to Arthur Hayes, is caused by high inflation and corrosion of major global currencies, which will lead to an escape to gold and Bitcoin.
Former BitMEX boss and infamous Bitcoin evangelist Arthur Hayes claimed on his Twitter account that Bitcoin is preparing for a massive rally. This is after the euro reached the level of the dollar for the first time in 20 years.
Hayes himself is not without controversy. However, he has a significant following across several social media platforms, including a Twitter follower with 273,200 followers.
He said: “#DoomLoop has started. 1 USD = 1 EUR. Prepare for YCC and $ BTC = $ 1 million. But be patient, these things take time.”
Doom Loop Incoming
In April, Hayes published an article on his personal blog analyzing the current chaotic macroeconomic scenario. In his view, the weakening of the dollar and the euro will make countries outside the Western axis look for safer assets such as commodities, in this case gold and Bitcoin.
The “Doom Loop” theory, according to Hayes, was triggered after the European Central Bank (ECB) failed to implement effective measures to stop the conflict between Russia and Ukraine and Russia’s cut-off from the international financial system.
“As gold succeeds, so will Bitcoin. Why should any central bank “save” in any Western fiat currency when their savings can be arbitrarily and unilaterally expropriated by the operators of digital fiat money networks? ยป asks Hayes.
The fall in the value of the euro against the dollar is only the first phase of the change scenario highlighted by Hayes. The main catalyst will be the central banks’ attempts to control the yield curve (YCC), which limits the return so that governments can pay down debt.
Bitcoin for $ 1 million
Hayes’ theory is based on the dissolution of confidence in the institutions that issue fiat currencies today. Large money printing is always the solution to prevent countries from becoming insolvent.
A change of heart from financial entities, which he believes will happen sometime over the next decade, will trigger a rally that could push the value of gold to $ 10,000 and Bitcoin to $ 1 million.
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