Hayes Reiterates $1MM BTC Price Target

Arthur Hayes, the former CEO of the cryptocurrency exchange BitMEX, strongly advocates for investing in Bitcoin and altcoins, especially in light of the current macroeconomic environment. In a recent post on X (formerly known as Twitter), dated December 14, Hayes expressed his firm belief that shorting crypto at this time is unjustifiable, emphasizing instead the wisdom of going long on crypto.

Hayes’ stance is influenced by the anticipation of the United States Federal Reserve potentially lowering interest rates in the coming year. This sentiment was bolstered by the outcome of the Federal Open Market Committee (FOMC) meeting on December 13, where Fed policymakers decided to maintain the current freeze on interest rate hikes.

The decision, largely expected by the market, was followed by a speech and press conference by Fed Chair Jerome Powell. Powell hinted at the possibility of a “pivot” in monetary policy, indicating that while the policy rate might be close to its peak for this tightening cycle, the progress towards the 2 percent inflation objective remains uncertain.

This ambiguity has led to varied speculations about the next FOMC meeting in January. According to the CME Group’s FedWatch Tool, the likelihood of an interest rate cut in March 2024 was estimated at 71.4% at the time of Hayes’ comments.

The Fed’s decision day has since attracted mainstream media focus on the growing optimism that U.S. monetary policy might start to reverse after an aggressive cycle of rate hikes. Echoing this sentiment, Hayes reposted one such news story, asserting that the resulting increase in liquidity would significantly benefit crypto markets.

Hayes firmly stated, “At this point, there is no excuse not to be long crypto,” criticizing the decreasing value of fiat currency and underscoring his confidence in digital assets. He also reiterated his bold prediction of Bitcoin reaching a price of $1 million, a forecast he attributes to the macroeconomic trends undermining national currencies.

At the time of his post, Bitcoin (BTC/USD) was trading at approximately $42,500, following some volatility at the day’s Wall Street open..