Arthur Hayes, co-founder of BitMEX, has suggested that Bitcoin (BTC) could soar to a million dollars due to a potential market catalyst. He believes that a drop in real estate prices might prompt the Federal Reserve to pump liquidity into the economy, bolstering markets and risk assets like Bitcoin.
Bitcoin’s Million Dollar Prediction
Hayes referenced a Bloomberg article indicating financial losses at Aozora Bank and New York Community Bancorp, attributed to the faltering US commercial real estate sector. He predicts that the resulting increase in market liquidity will drive Bitcoin’s price to the $1 million mark.
Despite Federal Reserve Chairman Jerome Powell’s indication that a March rate cut is unlikely, Hayes anticipates that real estate weaknesses and banking issues will compel the Fed and Treasury to relax monetary policies. He suggests that this could lead to a bailout package that would benefit Bitcoin’s value.
With current banking instabilities and the market expecting a bailout, Hayes foresees a temporary dip in Bitcoin’s value. However, he predicts a swift recovery and significant price increase if a new bailout package is introduced, similar to Bitcoin’s performance in March 2023.
At the time of the article’s publication, Bitcoin was trading at $42,857, but Hayes’s analysis points to a much higher potential valuation for the leading cryptocurrency in the near future.