Love him or hate him, Arthur Hayes has always been one to capture attention when he speaks. During his recent appearance on Impact Theory with Tom Bilyeu, Hayes made a bold prediction for Bitcoin’s future. He believes that the price of Bitcoin (BTC) will soar to $750,000 to $1 million by 2026.
Hayes substantiated his claim by pointing to the predictable response of the United States government to intervene in every economic crisis with a bailout. According to Hayes, this intervention creates an endless cycle of central bank printing, leading to inflation and preventing the natural market cycles of growth and correction. He argued that this structural problem in the US economy will ultimately lead to a major financial crisis.
To understand how Bitcoin will reach such a high price, Hayes outlined several catalysts. Firstly, he mentioned the mounting government debt and the need for money printing to address it. While monetary expansion may lead to bull markets, it also results in high inflation. Hayes believes that after a massive bull market, a generational collapse will occur, similar to the Great Depression.
Another factor contributing to inflation and ultimately Bitcoin’s rise is the US banking system. Hayes pointed out that the system is functionally insolvent due to regulators prioritizing accounting profits over economic considerations. Banks bought low-yielding treasuries with almost infinite leverage, causing a regional banking crisis when the price of those treasuries decreased. Hayes argued that the US banking system cannot afford to buy more debt and the Federal Reserve’s commitment to quantitative tightening further exacerbates the situation.
Despite these concerning indicators, Hayes maintains a positive outlook for Bitcoin. He expects Bitcoin to remain in the $25,000 to $30,000 range throughout this year, as the economy faces financial disturbances and people recognize negative real interest rates. The eventual approval of a spot Bitcoin ETF and the halving event could push the price to a new all-time high in 2024. Hayes believes that the real bull market and the rise to $750,000 to $1 million will happen after Bitcoin regains its all-time high by the end of 2024.
However, Hayes acknowledges that Bitcoin’s price will experience a significant drawdown, as it has after every bull market. He estimates a 70% to 90% drop from its peak. Despite these fluctuations, he remains optimistic about Bitcoin’s long-term potential.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and make informed decisions when it comes to investments and trading.