Arthur Hayes, co-founder of BitMEX, believes that Bitcoin 
$66,385 could reach seven figures as U.S. debt continues to rise. In a recent post on social media platform X, he shared with his 586,800 followers that if U.S. banks alter the supplementary leverage ratio (SLR) rule, it could inundate the markets with liquidity, significantly propelling Bitcoin’s growth.
Impact of SLR Rule Changes on Bitcoin
The SLR rule determines the liquidity that large banks must maintain, aiming to curb excessive risk-taking. This rule was temporarily modified during the COVID-19 pandemic to alleviate stress in the treasury market and enhance banks’ ability to lend to households and businesses.
Hayes is confident that Bitcoin could hit $1 million in this cycle, attributing this potential surge to the global central banks’ increase in money supply. He stated, “Every government worldwide will print money, drastically increasing the amount of cash in circulation,” which could significantly enhance Bitcoin’s value.
“The PR campaign that U.S. banks are conducting to obtain SLR exemptions has completely accelerated. This allows banks to buy U.S. Treasuries with infinite leverage and easily finance the massive debt issued by the U.S. government. This is another signal toward BTC reaching $1 million.”
Hayes also noted that the global financial system is undergoing a transitional phase, with elites likely resisting this shift. This resistance could lead to unprecedented money printing, resulting in significant increases in the value of digital assets like Bitcoin.
Effects of SLR Rule Modifications
Changes to the SLR rule could enable banks to have more liquidity, increasing the amount of money circulating in the market. This might raise demand for digital assets, thereby boosting Bitcoin’s value. Hayes’ predictions provide a noteworthy perspective given the current dynamics in the Bitcoin market.
The growing popularity of Bitcoin and optimistic projections from influential figures are heightening interest in digital currencies. However, market fluctuations and regulatory changes remain significant factors that could impact Bitcoin’s future value.
