BitMEX co-founder and cryptocurrency veteran Arthur Hayes predicts that an explosive rally will take Bitcoin (BTC) to $1 million.
There is says his 368,300 followers on Twitter that Bitcoin will see a gain of more than 3,400% from its current value of $28,179 due to changes in monetary policy by the Federal Reserve.
He predicts that US Federal Reserve Chairman Jerome Powell will have to start cutting interest rates after sharp hikes to reduce inflation and counter recessionary concerns.
Hayes says that the rate cut will act as the catalyst to make the price of Bitcoin soar. The Bitcoin price has generally performed well when more liquidity enters the markets.
“The faster Powell walks, the faster he has to cut. I will buy all the dips in BTC. Thank you sir for more entry points.
BTC = $1 million
Banktermfundingprogram = Yield curve control”.
Hayes has said that the Bank Term Funding Program (BTFP), which the Fed announced this month to provide liquidity to struggling US banks, is another injection of liquidity into the markets that will help propel the price of Bitcoin higher.
He believes that the BTFP is similar to the injection of stimulus funds that the Fed issued during the COVID pandemic, during which Bitcoin hit an all-time high (ATH) of $69,045.
He predicts that the Fed will also participate in yield curve control (YCC), a type of monetary policy in which the government buys bonds to cap long-term interest rates at a specified target.
“[US Treasury Secretary Janet] Yellen begins to walk very slowly down the path to control of the yield curve. Welcome to the beginning of financial repression. You can be a fool or a saint when it comes to your capital. Treat your capital well and it will treat you well.
BTC = $1 million.”
Hayes made a similar prediction for Bitcoin in reaction to recent changes in monetary policy in China with the People’s Bank of China lowering the Reserve Ratio Requirement (RRR) by 0.25%.
He said he believes China’s move is a sign that a capital injection is coming to the markets. The RRR is the amount of reserves that a commercial bank must hold as a percentage of its deposits and when it goes down, the amount that commercial banks can lend or invest goes up.
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