The bitcoin price has bounced from highs of around $43,000 to under $38,000 per bitcoin in recent days with crypto bulls and bears fighting for control of the market. Other major cryptocurrencies—including ethereum, BNB
Now, Arthur Hayes, the co-founder of bitcoin and crypto exchange BitMEX, has outlined how he sees the bitcoin price eventually hitting $1 million—a far more bullish price prediction than he made earlier this month.
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“The Federal government will soon pay more in interest on its debt than it receives in tax receipts if it’s forced to pay an interest rate that is much higher than today’s,” Hayes wrote in his latest BitMEX blog, calling this the “start of an insolvency doom loop” that could lead to the bitcoin price surging to $1 million per bitcoin by 2030.
Last week, Federal Reserve chair Jerome Powell signaled the U.S. central bank is planning to move aggressively to combat inflation in coming months. Powell said a half-point interest rate increase “will be on the table” when the Federal Reserve meets on May 3, sending U.S. Treasury yields to lows not seen since late 2018 as fears bubbled that a heavy-handed monetary tightening could trigger a recession.
“This week, we start with China bringing in additional growth concern,” Mohamed El-Erian, Allianz chief economic advisor, told CNBC. “We are now having both growth and inflation concerns and that’s why you’re seeing not just the moves in the equity market, but you’re seeing some peculiar moves … in the bond market.”
Hayes pointed to soaring inflation and the difficulties faced by the European Union’s European Central Bank (ECB) in raising interest rates as exacerbating the “doom loop” scenario.
“The doom loop will usher in $1 million bitcoin and [a gold price of] $10,000 to $20,000 by the end of the decade,” predicted Hayes, who is awaiting sentencing after he and fellow BitMEX co-founder Benjamin Delo admitted in February they failed to put anti-money laundering checks in place at BitMEX.
The gold price has climbed almost 5% so far through 2022 and is nudging its all-time highs even as the bitcoin price remains some 40% below its 2021 peak.
“We must agitate for self-interested flags to save part of their current account surplus in bitcoin so that bitcoin farm-to-table economies sprout around the globe,” Hayes added.
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However, earlier this month, Hayes revealed he’s betting on a bitcoin and ethereum price “crash” by June, writing that bitcoin, ethereum and crypto markets “will lead equities lower as we head into the downturn, and lead equities higher as we work our way out of it.”
Other bitcoin and crypto market watchers have also flagged recent price volatility, though most of those in the crypto industry remain upbeat.
“The price of bitcoin has been very erratic lately with a wide-ranging movement from a $38,000 support level to a $41,000 resistance,” Alexander Mamasidikov, co-founder of mobile digital bank MinePlex, said in emailed comments. “Over the next week, however, we can expect bitcoin’s price to form steady support at $41,000.”