Bitcoin could still reach $1M as governments continue printing fiat — Arthur Hayes
The macro conditions that created the fiat liquidity surge have powered Bitcoin's ascent, Hayes claims.
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Arthur Hayes, the former CEO of crypto exchange BitMEX, recently issued a forecast that the crypto bull market will continue, citing fiat money-printing actions from governments as the primary catalyst for the surge in Bitcoin’s price.
In his latest blog post titled “Left Curve,” Hayes argues that governments worldwide will continue to print money to manage their debt burdens, resulting in the devaluation of fiat currencies against Bitcoin and other cryptocurrencies.
“Bitcoin is the hardest money ever created. If you sold shitcoins for fiat that you don’t immediately need for living expenses, you are fucking up. Fiat will continue to be printed ad infinitum until the system resets,” Hayes said.
Hayes emphasized that the impetus to expand the money supply is even more apparent in 2024, as it is an election year for the United States. He cited a chart from global macro research firm BCA Research, which shows that an incumbent President’s re-election odds drop significantly if the general population perceives the economy to be in a recession during an election year.
“The problem with artificially lowering government bond yields is that it promotes malinvestment. The first projects are usually worthy. However, as politicians strive to create growth in order to get re-elected, the quality of projects declines,” Hayes claimed.
Regardless of the outcome of the US presidential election, Hayes believes that the printing of money will accelerate, leading to further fiat devaluation. He advised crypto traders to prepare for this scenario by buying the dip, as it should ignite the powder keg for a rampant crypto bull market.
Hayes’ prediction aligns with the growing sentiment that Bitcoin serves as a hedge against fiat inflation. Cathie Wood, CEO of asset manager ARK Invest, recently described the cryptocurrency as a “flight to safety” and a hedge against “horrible fiscal and monetary policies.”
While Hayes did not provide an updated BTC price target, he suggested that the path from $70,000 to $1 million for BTC/USD may not be as difficult as its historical rise from zero. Hayes acknowledged that the macro conditions that created the fiat liquidity surge powering Bitcoin’s ascent will only become more pronounced as the sovereign debt bubble begins to burst.
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