Bitcoin (BTC) Will Reach $1,000,000 Amid Big Moves From Central Banks, According To BitMEX Founder Arthur Hayes
BitMEX co-founder CEO Arthur Hayes predicts a massive Bitcoin (BTC) rally and a major pivot from the world’s central banks.
Hayes was reacting to the news that the People’s Bank of China has reduced the Reserve Ratio Requirement (RRR) by 0.25%. says he is targeting a $1 million price tag for Bitcoin.
Hayes believes China’s move supports his thesis that more government intervention and capital infusions are coming.
The reserve ratio requirement is the amount of reserves that a commercial bank must maintain as a percentage of their deposits.
When the requirement is lowered, the amount that commercial banks can lend or invest increases.
In a new essay on the subject, Hayes says monetary policy looseners are undoubtedly on the way.
By zeroing out the recently created Federal Reserve’s Bank Term Funding Program (BTFP) which aims to ensure that banks meet all withdrawal requests from depositors, Hayes suggests that it will lead to a bigger Bitcoin rally than the pandemic-related quantitative easing measures if the amount is something to go by.
“The Fed printed $4.189 trillion in response to COVID. Right off the bat, the Fed implicitly printed $4.4 trillion with the implementation of the BTFP.
During the COVID money printing episode, Bitcoin rose from $3,000 to $69,000. What will it do this time?”
On how the projected Bitcoin and crypto rally is likely to be received in the mainstream going forward, Hayes says,
“The subsequent Bitcoin rally will be one of the most hated ever. How can Bitcoin and the crypto markets in general rise sharply after all the bad things that happened in 2022?
Didn’t people learn Bitcoin and those associated with it are pigs? Aren’t people afraid of the narrative that Bitcoin caused the failure of major banks, almost consuming the American banking system?”
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Featured image: Shutterstock/Gorodenkoff/deepme
