Bitcoin is facing a critical moment that could potentially push its price to $1 million, according to Arthur Hayes, the former CEO of crypto exchange BitMEX. In a blog post titled “The Periphery,” Hayes argues that Bitcoin is already sending warning signals to the market about the future. Hayes believes that the risk of worldwide escalation is growing due to the United States’ increasing involvement in two new wars. He points out that the US Federal Reserve is facing inflation but has halted interest rate hikes. Additionally, a “bear steepener,” which refers to a situation where long-term US Treasury bonds offer no safety for investors, is looming for the economy.
Hayes explains that this combination of factors will drive investors to seek alternatives, such as gold and, more importantly, Bitcoin. The recent rally in BTC/USD, up 15% this week, following President Joe Biden’s address on the Ukraine and Israel wars, further reinforces this point. According to Hayes, this rally is not speculative but rather a reflection of Bitcoin discounting a future world war situation characterized by high inflation.
Hayes is known for his predictions regarding global economics post-COVID-19 and subsequent inflation. He believes that these predictions will lead to a $1 million price tag for Bitcoin. This will be a result of yield curve control (YCC), a move in controlled economics that is already being implemented in Japan.
The blog post concludes by stating that once everyone realizes the game being played, the Bitcoin and crypto bull market will be in full swing. It is time to start rotating out of short-term US Treasury bills and into cryptocurrencies.
Hayes’ views align with billionaire investor Ray Dalio’s concerns about a potential World War III scenario. Dalio, the founder of Bridgewater Associates, the world’s largest hedge fund, gives a 50% chance of such a scenario developing. He emphasizes the importance of leaders stepping back from the brink and avoiding becoming fully drawn into a hot war. Alliance dynamics also play a crucial role, as being allied and helpful to allied countries in brutal wars is always costly and raises the risk of a conflict spreading worldwide.
In addition to the war-related concerns, buzz over the potential approval of an exchange-traded fund (ETF) for Bitcoin has contributed to its price surge. Bitcoin is up 27% in October and has seen an over 100% increase since the beginning of the year.
It is important to note that this article does not provide investment advice or recommendations. Readers are encouraged to conduct their own research before making any investment decisions.