The famous crypto philosopher Arthur Hayes agrees with the forecast that Bitcoin could reach $1 million. But not in the next 90 days, as the ex-CEO of Coinbase thinks. For such growth, the main cryptocurrency will need 2-3 years.
Here’s what Hayes said in an interview with Bankless Podcast:
“Do I think Bitcoin will hit $1 million in 90 days? No I do not think so. I think bitcoin will reach $1 million in this cycle.”
Next, the legendary trader explains his reasoning. The growth of bitcoin will be the result of excess liquidity, which will be created in the financial market by quantitative easing (QE) and the BTFP banking bailout program.
As a reminder, BTFP is an emergency lending initiative offered by the Fed to banks in exchange for US Treasury bonds, mortgage-backed securities, and other eligible collateral assets.
Hayes believes that external assets (gold, real estate and bitcoin) are preferable to internal money (fiat), which is a liability on the balance sheet. He said that the banking system is not affected by foreign money and that it could be an interesting investment option in turbulent times.
Now the Fed finances the entire banking system uncontrollably. According to Hayes, this will lead to an increase in the price of bitcoin and external monetary assets.
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