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The co-founder and former CEO of BitMEX, Arthur Hayes, has said that Bitcoin’s price could rally to $1 million amid a potential crisis in the US banking industry.
Hayes shared his bullish prediction through a post on X, where he dismissed the sentiments of the US Federal Reserve Chair, Jerome Powell. The Fed Chair has said that the US banking system is strong, but Hayes says the market has a different opinion.
“Who is right the market or the central banker?” Hayes asked.
Bitcoin’s potential rally to $1 million
Hayes has said that the banking industry is in for a bailout. If this bailout happens, Bitcoin will become the go-to asset for those escaping the crisis, in which case the demand will propel Bitcoin to $1 million.
Resume the dump!
JAYPOW says US econ & banks strong to very strong.$NYCB says otherwise. Who is right the market or the central banker?
Time and compounding interest are two things even Neo-Keynesians can't wish away.
The bailout is coming, $BTC = $1mm
Yachtzee 😘😘😘 pic.twitter.com/yWLqly72jY— Arthur Hayes (@CryptoHayes) February 5, 2024
Hayes believes the crisis in the US banking industry that led to the collapse of Silicon Valley Bank and Signature Bank early last year is still alive.
Hayes says banks will again require a bailout from the Federal Reserve and the US Treasury. The two federal departments will inject a huge monetary supply into the banking sector, which will send Bitcoin prices higher.
Hayes predicts a short-term correction in Bitcoin price
In January 2024, Hayes predicted that Bitcoin would plunge in the short term. He attributed the drop to a mini financial crisis and a risk of high inflation that will see Bitcoin drop to as low as $30K.
In the “Yellen or Talkin” blog post, he predicted that the Fed was unlikely to trim interest rates in March.
"Yellen or Talkin'?" is an essay on why I think the $BTC slump is pointing to a TradFi mini-financial crisis, and it will bottom in the $30k to $35k range.https://t.co/uwiLscKwzW pic.twitter.com/zRpUcE6TIz
— Arthur Hayes (@CryptoHayes) January 23, 2024
In Q1 2024, Hayes said Bitcoin would encounter multiple challenges such as the supply chain crisis in the Red Sea between the US and Houthi rebels. The conflict is expected to trigger inflation in Q3 and Q4 2024.
At the time, Hayes also said that the US Bank Term Funding Program (BTFP) that went towards supporting banks after the failure of several US banks last year would be stopped. He attributed the recent drop in Bitcoin prices to the market reacting to that development.
Jerome Powell speaks on trimming interest rates
While speaking in an interview with “60 Minutes” last week, Powell said that the Fed would start reducing interest rates carefully.
He added that before any decision was made regarding interest rates, the Fed wanted evidence that inflation had dropped to 2%. He also added that the Fed wanted more confidence in the recovering economy before taking the bold step of trimming rates.
The post Arthur Hayes gives bullish prediction on Bitcoin’s rally to $1 million appeared first on Invezz
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