BitMEX co-founder Arthur Hayes has claimed that a catalyst will cause Bitcoin (BTC) to rise to seven-figure levels. Arthur Hayes also stated on social media that the decline in real estate prices could soon cause the Federal Reserve to inject liquidity into the markets to support the economy.
Bitcoin’s Million Dollar Prediction
He pointed to a new Bloomberg article showing that Japan’s Aozora Bank and New York Community Bancorp (NYCB) have suffered significant losses due to the weakening of the US commercial real estate sector. The expert mentioned that the increase in liquidity, which often leads to the rise of risk assets like Bitcoin, will eventually cause the leading cryptocurrency to reach $1 million, stating the following:
What did the Fed and the Treasury do the last time US real estate prices fell and banks went bankrupt worldwide? BTC = $1 million.
The Fed’s Impact on Bitcoin
Despite Fed Chairman Jerome Powell’s Wednesday statement that the likelihood of a rate cut by the Fed in March is low, Hayes emphasized his belief that the weakness in real estate and recent banking issues could eventually force the Fed and the US Treasury to loosen monetary policy, saying:
Jaypow (Fed Chairman Powell) and Bad Burl Yellen (Treasury Secretary Janet Yellen) will start printing money very soon. NYCB announced a ‘surprise’ loss due to credit loss reserves being estimated to increase tenfold. I think banks are not stable. The fall in 10-year and 2-year yields signals the market’s expectation for some sort of renewed banker bailout package to fix this decay. BTFP (Bank Term Funding Program) and the discount window will not help since CRE (commercial real estate) and multifamily housing loans are not yet eligible collateral. We expect BTC to faint a bit, but if NYCB and a few others go into the weekend, expect a new bailout package immediately. Then BTC, like its March 2023 price movement, is off to the races.
Bitcoin was trading at $42,857 at the time the article was written.
