Arthur Hayes, the co-founder and former CEO of BitMEX, a cryptocurrency derivatives exchange, reiterated his prediction that Bitcoin (BTC) will reach a seven-figure price. Hayes highlighted the developments that would support his prediction for the largest cryptocurrency.
Bitcoin Sees 2,738% Increase
The renowned figure Hayes stated that a monetary policy tool known as Yield Curve Control (YCC) would serve as an important catalyst for Bitcoin to reach $1 million and would result in an approximately 2,738% increase from current price levels. Bitcoin experienced a surge up to $36,000 in the early hours of November 2nd, but as of the time of writing, it is trading at $34,265, marking a 3.40% decrease in the past 24 hours.
Central banks use yield curve control to influence the long-term interest rate by purchasing long-term bonds as much as possible and prevent the interest from exceeding the intended target. According to Hayes, even when the Federal Reserve (Fed) tightens, the US government maintains a loose monetary policy environment.
The co-founder of BitMEX initially mentioned his seven-figure prediction in an article he wrote in March of this year. At that time, he argued that China’s loosening of its monetary policy would trigger Bitcoin’s surge to $1 million.
“Time for a Rally”
Hayes also stated that the Federal Reserve’s decision to halt interest rate hikes in the middle of this week indicates that it is rally time for financial assets. The prominent figure in the crypto world mentioned that the Fed’s decision would impact the monetary policies of other central banks and likely push them towards monetary easing, saying:
Everything is now in place for Bitcoin’s price to rise. I am starting to increase my speed of converting treasury bonds into BTC and shitcoins. Since the Fed has taken a break of more than two meetings, all other central banks are now ready to print money. I expect significant incentives from China, Europe, and Japan.
