Arthur Hayes, the co-founder of BitMEX has recently shared his perspective on Bitcoin (BTC), suggesting a potential surge in BTC’s value to $1 million.
In a post on X, Hayes highlighted the lack of rationale for not taking a long position in cryptocurrency, pointing out the skepticism about traditional fiat currency.
Fiat currency
— Elon Musk (@elonmusk) October 1, 2023
According to Hayes, the fiat currency in one’s pocket is “a filthy piece of trash.” His message, laced with a blend of faith and finance, culminated in a cryptic yet emphatic prediction: Bitcoin’s value will skyrocket to $1 million.
Bitcoin’s Role In The New Economic Landscape
Accompanying his post was an image of a Bloomberg article titled “Wall Street Traders Go All-In on Great Monetary Pivot of 2024,” which discusses a significant shift in monetary policy forecasted for 2024.
The Bloomberg article referenced by Hayes outlines a surprising alignment between Wall Street traders and the Federal Reserve, suggesting a change in the financial ecosystem.
At this point, there is no excuse not to be long #crypto. How many more times must they tell you that the fiat in your pocket is a filthy piece of trash. Believe in the Lord, and he shall set you free. $BTC = &1mm
Yachtzee!!! pic.twitter.com/xbJUCnyy6f
— Arthur Hayes (@CryptoHayes) December 14, 2023
It details a ‘soft landing’ in the economy, a notable shift from the US Fed’s policy tightening, and a more aggressive approach to ending the interest rate-hiking cycle. This new harmony between Wall Street and the Federal Reserve indicates a departure from years of discord and a strategic approach to tackling economic challenges.
Hayes’ statement regarding Bitcoin’s potential to hit the $1 million mark contributes a fresh dimension to the discourse, fueling speculation about BTC’s role in this changing economic landscape.
The Path To A $1 Million Bitcoin Valuation
Notably, Hayes isn’t the only one envisioning a $1 million price tag for BTC. Samson Mow, CEO of Jan3 and a well-known Bitcoin investor has consistently advocated for BTC’s significant value increase. Mow sees the $1 million per BTC target as achievable, crediting this optimistic outlook to an influx of institutional capital and the scarcity effect of upcoming BTC halving events.
This view aligns with the BTC community’s long-standing anticipation that institutional investment will be a key driver for major price increases. Mow predicts that the limited supply of BTC, coupled with increasing institutional capital, will push its valuation upward.
Moreover, Bitcoin analyst Bit Paine has provided a mathematical basis for the million-dollar BTC hypothesis. Paine’s analysis, rooted in supply and demand principles, calculates the new BTC supply for upcoming cycles and assesses potential sales from long-term holders, using HODL Waves data.
People acting like @Excellion is insane for his $1M / #BTC call forget how fast #bitcoin can happen – which is the exact mindset needed for such a thing to occur.
$1M/#BTC is not my base case or expectation, but I can certainly imagine a set of circumstances under which it… pic.twitter.com/Fc4acjShpy
— Bit Paine ⚡️ (@BitPaine) November 24, 2023
The analyst projects a notable capital influx of approximately $4.5 trillion, with US retirement savings and corporate treasuries as potentially significant contributors. Beyond institutional investments, Paine identifies other factors, such as the adoption of Bitcoin by nation-states and the influence of new money creation, particularly in relation to the global bond market, as potential catalysts for Bitcoin’s meteoric rise.
Featured image from Unsplash, Chart from Tradingview