Controversial BitMEX co-founder Arthur Hayes continues to predict that Bitcoin (BTC) will skyrocket to $1 million in price.
The crypto billionaire tells his 376,600 Twitter followers that First Republic Bank won’t likely be the last financial institution to collapse.
According to Hayes, another regional bank will likely face liquidity issues in the coming days as the Federal Reserve gears up to raise interest rates.
“Seems like the Fed still wants to hike 0.25% at its meeting this week. They still don’t get it, or maybe they do and are just hoping and praying the market is stupid. Doesn’t matter either way, a rate hike almost (guarantees) another non-(too-big-to-fail bank) will bite the dust this week.
(First Republic) has a loan book full of jumbo mortgages made to rich people at low rates that are now worth way less after interest rates rose.
The next bank to maybe fail this week, I think, will have a loan book full of illiquid large CRE (commercial real estate) loans.”
Hayes also predicts that the crisis in the banking sector will trigger macroeconomic turmoil that could help springboard BTC to $1 million. He has made numerous $1 million Bitcoin predictions before.
“I will be looking through my sell-side research for a chart that shows the US banks with the largest CRE portfolios. I will then take a hard look at 50%-75% OTM (out of the money) short-dated puts on these banks to be purchased after the Fed meetings. Yahtzee!! BTC=$1mm.”
Hayes has had a controversial career.
Last year, the former BitMEX CEO and fellow executive Benjamin Delo both pled guilty to violating the Bank Secrecy Act by willfully failing to establish anti-money laundering protocols at their exchange. A judge later sentenced Hayes to six months of home detention and two years of probation, and the former CEO also agreed to pay a fine of $10 million.
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