According to Arthur Hayes, by 2026, the price of Bitcoin might fluctuate between $750,000 and $1 million. Hayes was a guest on the Impact Theory podcast with Tom Bilyeu. In this interview, Hayes described how investors are gravitating towards alternative assets like Bitcoin due to the present financial climate.
Hayes contends that the government's programme of monetary expansion is responsible for the instability of the American economy. Printing money is the only way to address the persistent rise in the US national debt, which stands at $7.750 billion, and the decline in productivity.
It is not possible to view this approach as a long-term means of rescuing the economy, though. Although a monetary expansion raises inflation rates, it momentarily improves the markets (real estate, stock market, cryptocurrency, etc.).
Hayes specifically mentioned that historically, the biggest purchasers of US debt were China, Japan, and other nations. But this is no longer the case, and this modification will make things far worse in the US. Although there is considerably greater uncertainty in the banking sector, players there could yet step in. According to Hayes, the financial sector is functionally insolvent, which explains the large number of bankruptcies in the area:
"The regional banking crisis is the result of the banks buying all of these Treasury bonds together in 2021, and it is obvious that the price has dropped significantly since then."
According to the former CEO, there will probably be a significant financial disaster. Its effects might even surpass those of the Great Depression.
This dire macroeconomic forecast, according to Hayes, is not expected to have a negative impact on Bitcoin. He predicts that most investors will eventually come to understand that real rates are negative and do not accurately reflect the state of the economy, which will drive them towards cryptocurrencies:
Even at a high growth rate, if the economy is expanding at a nominal rate of 10% but I only receive 5 or 6%, people will start looking for other opportunities, with cryptocurrency being one of them.
Two further variables, in addition to the halving, may contribute to Bitcoin reaching a new all-time high: the potential approval of a Bitcoin spot exchange-traded fund (ETF) in the US, Europe, and possibly Hong Kong. According to Hayes, a bull market is probably going to start in late 2019. Bitcoin might then hit the "$750,000 to $1 million" price level. But like with every bull market, Hayes said, there would be a price correction of between 70 and 90 percent.
Among the most controversial people in the cryptocurrency space is Arthur Hayes. In response to accusations of breaking the Bank Secrecy Act, the former CEO of Bitmex entered a guilty plea. Hayes is still regarded as one of the most important people in the cryptocurrency industry despite his legal troubles.
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