BitMEX co-founder and crypto veteran Arthur Hayes predicts that an explosive rally will push Bitcoin (BTC) to $1 million.
Hayes told his 368,300 Twitter followers that due to changes in the Federal Reserve’s monetary policy, Bitcoin will experience a 3400% increase from its current value of $28,179. told.
Hayese predicts that US Fed Chairman Jerome Powell will at some point have to start lowering interest rates after sharp increases to keep inflation down. Hayes thinks this development will also act as a catalyst to raise the price of Bitcoin. Bitcoin’s price has generally responded positively when more liquidity entered the markets in the past.
“I will buy BTC on all dips. Thanks for more entry points sir.
BTC = $1 million
Bank term finance program = Yield Curve Control.”
Hayes thinks the Fed’s Bank Term Financing Program (BTFP), announced this month to provide liquidity to struggling US banks, is another injection of liquidity into the markets that will help push the Bitcoin price higher.
Besides, he predicts the Fed will engage in yield curve control (YCC), a monetary policy in which the government buys bonds to limit long-term interest rates to a specific target.
Hayes made a Bitcoin prediction in his post today. repeated:
“U.S. Secretary of the Treasury Janet Yellen has begun to move towards Yield Curve Control. Welcome to the beginning of financial pressure (…) Treat your capital well and it will treat you well.
BTC = $1 million.”
Hayes made a similar prediction for Bitcoin in response to recent changes in monetary policy in China. The People’s Bank of China reduced the Required Reserve Ratio (RRR) by 0.25%, which Hayes believes is a sign that China’s move is a sign of capital influx into the markets.
You can check the price movements here.