BitMEX founder Arthur Hayes says that Bitcoin (BTC) will likely hit a massive value before the current market cycle peaks.
In a new interview with Master Ventures founder Kyle Chasse, Hayes says that Bitcoin is likely to print a series of rallies this cycle amid an expansion of the monetary supply.
[adinserter block="1"]“I think Bitcoin is going to hit a numerically interesting number. Now, obviously, I put a $1 million Bitcoin out there. I hope it hits a $1 million, but maybe it’s like $666,000 or $500,000 or $250,000 – some round number that in the human mind is significant for some arbitrary reason. We are going to hit that level and then we’re going to expect insane things out of the pace of fiat money creation. And at that point, it’s probably time to sell everything.”
Hayes also believes that Bitcoin has moved away from its halving-based four-year cycle and instead its price action is driven by the level of fiat liquidity sloshing around the markets.
Bitcoin’s halving is an event that slashes the BTC miner reward in half, triggering an imbalance between supply and demand that has previously coincided with rallies.
“I think that the four-year Bitcoin halving cycle and sort of the miner profitability and how that swings over time made a lot more sense in terms of a market cycle when Bitcoin was a much smaller asset class…
But now that Bitcoin and crypto are a bona fide asset class, they are talked about in every major financial network in the world, every central bank has an opinion on it, whether it’s good or whether it’s bad, you have the leader of the empire of the US talking about Bitcoin and policies…
Now I think Bitcoin has transitioned from this sort of technological digital bare asset into the best smoke alarm for fiat liquidity that we have globally. Previously, that role was held by gold. Gold and Bitcoin have some different properties that make them react a little differently to things. And now I think we have a 24/7 market. Anyone with an internet connection can access it, and it’s really just driven [by] fiat liquidity.”
Bitcoin is trading for $84,152 at time of writing, down 3.7% in the last 24 hours.
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