BitMEX co-founder and crypto veteran Arthur Hayes is predicting an explosive rally will drive Bitcoin (BTC) to $1 million.
Hayes tells his 368,300 Twitter followers that Bitcoin will see a more than 3,400% gain from its current value of $28,179 due to changes in Federal Reserve’s monetary policy.
He is predicting that U.S. Federal Reserve Chairman Jerome Powell will have to start lowering interest rates after steep hikes to draw down inflation in order to counter recessionary concerns.
Hayes says the rate cutting will act as the catalyst to send Bitcoin’s price soaring. Bitcoin’s price has generally done well when more liquidity enters the markets.
“The faster Powell hikes, the faster he will have to cut. I will be buying all dips in BTC. Thank you sir for more entry points.
BTC = $1 million
Banktermfundingprogram = Yield Curve Control.”
Hayes has said that the Bank Term Funding Program (BTFP), which the Fed announced this month to provide liquidity to struggling US banks, is another injection of liquidity into the markets that will help to drive Bitcoin’s price higher.
He believes the BTFP is similar to the injection of stimulus funding that the Fed put out during the COVID pandemic, during which Bitcoin hit an all-time high (ATH) of $69,045.
He predicts that the Fed will also engage in yield curve control (YCC), a type of monetary policy in which the government buys bonds to cap long-term interest rates at a specific target.
“[US Treasury Secretary Janet] Yellen starts off very slowly on the road to Yield Curve Control. Welcome to the start of financial repression. You can either be a sucker or a saint as far as your capital is concerned. Treat your capital well and it will treat you well.
BTC = $1 million.”
Hayes made a similar prediction for Bitcoin in reaction to recent changes in monetary policy in China with the People’s Bank of China reducing the Reserve Ratio Requirement (RRR) by 0.25%.
He said he believes China’s move is a sign that an infusion of capital is coming to the markets. The RRR is the amount of reserves that a commercial bank must maintain as a percentage of their deposits and when it is lowered, the amount that commercial banks can lend or invest rises.
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