Arthur Hayes: Fed Shift Could Catapult Bitcoin to $1 Million
Arthur Hayes, co-founder of BitMEX, has reignited the controversy over a seven-figure Bitcoin value, presenting a brand new bullish case for the cryptocurrency.
His projection hinges on what he sees as an imminent shift within the Federal Reserve’s coverage.
Powell’s Stance vs the Potential New Era
In a current post on his X (previously Twitter) account, Hayes pointed to feedback made by Stephen Miran, a current nominee for the Fed’s Board of Governors. The feedback have been made throughout his congressional listening to. According to reviews, Miran talked about that “reasonable long-term rates of interest” can be one of many Fed’s new duties.
Hayes interprets this as a robust sign that the Fed is shifting towards a Yield Curve Control (YCC) coverage.
Current Fed Chair Jerome Powell has been at odds with the Trump administration relating to financial coverage. He has as an alternative centered extra on the Fed’s different mandates of most employment and steady costs, somewhat than long-term charges.
However, Powell’s time period is ready to expire in May of subsequent 12 months, and Hayes believes it could open the door for the Fed to implement aggressive long-term fee management if a pro-Trump determine is appointed as the following chair. He argues that if the Fed have been to undertake YCC, actual rates of interest would doubtless flip unfavorable.
This situation would lead to a decline within the greenback’s worth, prompting capital to stream into different belongings. In this surroundings, Hayes initiatives that Bitcoin could soar to $1 million due to the greenback’s declining buying energy.
A Bullish Bet on the Trump Era
Hayes’s observations are supported by current public statements from Trump administration officers who’ve repeatedly emphasised the necessity to “reasonable long-term rates of interest.”
Treasury Secretary Scott Bessent additionally explicitly dubbed this in a September 5 op-ed for The Wall Street Journal, the place he criticized the Fed for neglecting its authorized mandate to keep reasonable long-term rates of interest.
Arthur Hayes is assured the cryptocurrency market might develop considerably underneath a Trump administration. In an August post, he projected that the present crypto bull market might lengthen by way of 2026.
He particularly analyzed the chance {that a} Trump administration would provoke financial stimulus measures in mid-2026, a coverage he believes has the potential to help a market rally.
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