Arthur Hayes Says Bitcoin Could Break $1,000,000 on Vicious Cycle of Fed Money Printing
BitMEX founder and crypto veteran Arthur Hayes says Bitcoin (BTC) has a path to a $1 million price tag on the back of the Federal Reserve’s new Bank Term Funding Program (BTFP).
BTFP offers loans of up to one year to banks, savings associations, credit unions and other qualified depository institutions that pledge US Treasury bonds, agency debt and mortgage-backed securities and other qualifying assets as collateral.
In a new interview on the Bankless podcast, Hayes says the new program could lead to a “carousel” of US banks receiving endless amounts of money from the government in exchange for holding the bonds.
“It [will be] profitable for the banks to have a deposit base, buy every issue they can of US Treasuries, and if they ever need to give depositors money back, they give their debt to the Fed, the Fed gives them dollars. So we go on this little merry-go-round and the US government gets to stuff bonds down the throats of the banks and everyone is happy.
And that’s what I think the real end game is, and that’s how you get to Bitcoin at $1 million. Because it is yield curve control, it is the central bank that cashes the checks to the government. A few steps removed, but it’s the same f•••••g thing. And that’s where I think this show is beautiful—beautifully creepy, but somehow beautiful—and how it achieves this goal. People aren’t going to think about it until it exists, and obviously they’re going to say, “oh, it’s ending next year.” There’s no way it’s going to end this year.”
Recently, former Coinbase CEO Balaji Srinivasan bet that Bitcoin would reach $1 million in 90 days due to sudden hyperinflation. While Hayes doesn’t think Srinivasan will win his bet, he sees the scenario playing out over a longer time frame.
“So it’s $1 million Bitcoin, but it’s not going to happen immediately. There’s a path to get there. I think it’s not exactly easy, but that’s where I see it going, and I think Bitcoin will ultimately reduce that future. It not going to happen before June to help Balaji but I think [it will happen] when we start to see the slow-motion progression of everyone getting a bailout and the warranty expanding and expanding and expanding…”
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