Bitcoin on record: Arthur Hayes predicts $250,000!

Bitcoin on record: Arthur Hayes predicts $250,000!

Arthur Hayes, co-founder of BitMEX, has made a bold prediction for the price of Bitcoin: He predicts it will rise to $250,000 by the end of the year. This assessment, published on it-boltwise.de, is based on the assumption that the US government under President Donald Trump could make a change in economic policy, moving from stricter tariffs to a more expansionary monetary policy.

Hayes argues that the Federal Reserve is likely to loosen monetary policy to increase the money supply and thereby promote economic growth. This adjustment could attract investors who want to invest in Bitcoin to protect themselves against inflation and currency devaluation. In addition, the introduction of capital controls by the US government could increase the Bitcoin price.

Introduction of capital controls

Instead of imposing tariffs on imports, the government could tax foreign investments in U.S. Treasury bonds, stocks and real estate. These measures would potentially lead to investors investing more in Bitcoin and gold. Market developments could also benefit from discussions about easing the debt limits for banks with regard to US government bonds, which could create a positive climate on the capital markets.

The political environment will be influenced by the upcoming US elections, which Hayes sees as crucial for fiscal policy. The Trump administration has until 2026 to demonstrate economic benefits to voters, and an acceleration of money creation by the Federal Reserve seems inevitable to him. Additionally, a relisting of Fannie Mae and Freddie Mac could support the housing market and increase liquidity, which could also lead to an increase in construction activity.

Support from other investors

Hayes' optimistic forecasts are echoed by other investors. One example is Tim Draper, who also expects the Bitcoin price to rise to $250,000. Hayes estimates that Bitcoin could more than double its value in the next six months. Looking even further, Hayes predicts that Bitcoin could reach $1 million by 2028. He also believes Ethereum will rise to $5,000 this year.

A forward-looking aspect of Hayes’ analysis is potential legislative support for stablecoins and a comprehensive regulatory environment for cryptocurrencies. These developments could be crucial in encouraging companies to embrace Bitcoin as a reserve asset on their balance sheets and encourage mainstream adoption of cryptocurrencies.

Given the numerous factors that go into the predictions, it remains to be seen whether market performance will meet the expectations of Hayes and other backers. Decrypt highlights the complexity of the economic and political dynamics that could influence Bitcoin's future performance. The coming months are crucial for investors to closely monitor developments.