While a financial crisis looms, Bitcoin is set to thrive: Hayes’ insight for the coming years
The world of cryptocurrencies is well-known for its bold and often exaggerated predictions. However, when a prominent figure like Arthur Hayes, founder of BitMEX, makes a forecast, it’s hard to ignore.
Recently, Hayes stated in an interview with Tom Bilyeu on Impact Theory that he predicts the price of Bitcoin will reach a figure between $750,000 and $1 million by 2026. But how did he come to this conclusion?
Hayes firmly believes that there will be a significant financial crisis by the end of the decade, comparable to or even worse than the Great Depression. However, before this collapse, he foresees an unprecedented bull market in various sectors, including stocks, real estate, cryptocurrencies, and art.
What’s the reasoning behind this prediction? Hayes criticizes the almost predictable response of the US government to every economic crisis: intervention with bailout plans. According to him, this trend has created an endless cycle of central bank money printing, leading to inflation and preventing the economy from going through natural market cycles of growth and correction.
Hayes also highlights the growing government debt and runaway inflation as key factors that will support Bitcoin’s growth. He states that the only way to address these issues is through money printing, which, although it may lead to bull markets, has the consequence of high inflation.
Unlock the secrets to Bitcoin price predictions
Another problem that Hayes points out is the state of the US banking system. With $7.75 trillion of debt to refinance by 2026 and the inversion of the US Treasury yield curve, Hayes believes that the US banking system is functionally insolvent. This, combined with the fact that countries like China and Japan are no longer buying US debt like they used to, could further exacerbate the situation.
Despite these seemingly gloomy predictions about the global and US economy, Hayes remains bullish on Bitcoin. He predicts that Bitcoin will continue to fluctuate between $25,000 and $30,000 this year, but with the approval of a Bitcoin-based exchange-traded fund (ETF) in the US, Europe, and possibly even Hong Kong, along with the halving event, the price could reach a new all-time high of $70,000 in June or July of 2024.
In conclusion, while Hayes’ predictions may seem audacious, they cannot be ignored. With growing concerns about the global economy and the increasing popularity of cryptocurrencies as an alternative to traditional investments, the future of Bitcoin looks bright. However, as with any investment, it is essential to do your own research and consult a financial advisor before making decisions.