BitMEX co-founder Arthur Hayes is predicting that one catalyst will cause Bitcoin (BTC) to soar to seven figures.
Hayes tells his 448,300 followers on the social media platform X that a decline in commercial property prices may soon prompt the Federal Reserve to inject liquidity into the markets to prop up the economy.
He highlights a new Bloomberg article that shows Japan’s Aozora Bank and the New York Community Bancorp (NYCB) have racked up big losses due to the weakening US commercial property sector.
Hayes predicts an increase in liquidity, which generally causes risk assets like Bitcoin to rally, will cause the crypto king to eventually hit $1 million.
“What did the Fed and Treasury do last time US property prices plunged and bankrupted banks globally? Money printer go brrrr. BTC = $1 million.”
Hayes believes that commercial property weakness, plus the latest banking troubles, could force the Fed and U.S. Treasury to loosen monetary policy sooner rather than later, even though Fed Chair Jerome Powell indicated Wednesday a Fed rate cut is unlikely in March.
“Jaypow (Fed Chair Powell) and Bad Burl Yellen (Treasury Secretary Janet Yellen) will be printing money very soon.
NYCB announced a ‘surprise’ loss driven by loan loss reserves rising 10x vs. estimates. Guess the banks ain’t fixed. 10-yr and 2-yr yields plunged signaling the market expects some sort of renewed bankster bailout to fix the rot. BTFP (Bank Term Funding Program) and discount window won’t help as CRE (commercial real estate) and multi-family residential loans are not eligible collateral … yet.
Expect BTC to swoon a bit, but if NYCB and a few others dump into the weekend, expect a new bailout right quick. Then BTC off to the races just like March 2023 price action.”
Bitcoin is trading for $42,857 at time of writing.
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