Arthur Hayes Checks In on BTC $1MM

Bitcoin is at a pivotal moment, with the potential to reach a $1-million valuation, according to Arthur Hayes, the former BitMEX CEO. In his recent article, “The Periphery,” released on Oct. 24, Hayes suggests that Bitcoin is signaling future market movements.

Hayes identifies “global wartime inflation” as a significant catalyst for the rise of both Bitcoin and gold. He notes the U.S.’s growing involvement in two wars and the escalating global tensions as contributors to this economic phenomenon.

In an era where the U.S. Federal Reserve confronts persistent inflation and has paused interest rate increases, Hayes highlights the growing concerns in the U.S. financial landscape. He mentions that the financial system’s interdependencies, where banks’ hedging strategies and the U.S.’s wartime borrowing mutually reinforce, could destabilize the U.S. Treasury market.

Hayes argues that if long-term U.S. Treasury bonds don’t offer safety, investors will look elsewhere, specifically to gold and, more importantly, Bitcoin. This shift would be due to genuine concerns about global wartime inflation. The recent 15% surge in Bitcoin’s value following President Joe Biden’s remarks on the wars in Ukraine and Israel only strengthens this perspective.

The article underscores that the surge in Bitcoin and gold isn’t just about the approval of an ETF but more about the currency reflecting a potential inflationary global conflict. Hayes, who has been vocal about his predictions on the post-COVID-19 global economy and ensuing inflationary periods, reemphasizes the plausibility of Bitcoin hitting $1 million. He attributes this to the emerging practice of yield curve control (YCC), an economic strategy already gaining traction in Japan.

Concluding his article, Hayes warns that if the U.S. Federal Reserve manipulates interest rates to suit political agendas, it could compromise the authenticity of the U.S. Treasury market. As awareness of this reality grows, he anticipates a surge in the Bitcoin and broader cryptocurrency market, urging investors to consider shifting from short-term U.S. Treasury bills to cryptocurrency.