BitMEX co-founder Arthur Hayes believes one catalyst could help send Bitcoin (BTC) to seven figures as US debt mounts.
Hayes tells his 586,800 followers on the social media platform X that if US banks receive a supplementary leverage ratio (SLR) rule change, liquidity could flood the markets, giving Bitcoin a massive boost.
A temporary SLR rule change was provided during the COVID-19 pandemic “to ease strains in the Treasury market resulting from the coronavirus and increase banking organizations’ abilities to provide credit to households and businesses.”
The SLR determines how much liquidity large banks need to have on hand to make sure banks do not take on too much risk.
Says Hayes,
“The PR campaign by US banksters to get an SLR exemption is in full swing. This is top news on my bloomie (Bloomberg) [Wednesday]. This allows banks to buy USTs (U.S. Treasury securities) with infinite leverage and easily fund the insane amount of USG (US government) debt issuance. Another signpost on the road to BTC = $1 million.”
Last month, Hayes said he believes Bitcoin may hit $1 million this cycle due to global central banks increasing the money supply.
“I believe we can get to $1 million end of the cycle – $1 million… because the amount of money that’s going to be printed is going to be absolutely insane as every government around the world does the same thing, which is print money to make my people feel happy because the global growth is slowing…
I think that we’re in a transition period of a global financial system. We’re going to change it. The elites will resist the change, which means they’re going to print a lot of money and more money that’s ever been printed because they don’t want the post-World War II US hegemony to change.”
Bitcoin is trading for $96,922 at time of writing, up 2.7% in the last 24 hours.
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