BitMEX co-founder and CEO Arthur Hayes predicts a large Bitcoin (BTC) rise and a major shift in global central bank policy.
Hayes claims he’s eyeing a $1 million price tag for Bitcoin in response to the People’s Bank of China lowering the Reserve Ratio Requirement (RRR) by 0.25%.
Hayes feels China’s move validates his argument that further government intervention and money infusions are on the way.
The Reserve Ratio Requirement is the percentage of deposits that a commercial bank must keep in reserves.
When the requirement is reduced, commercial banks’ ability to lend or invest increases.
In a new essay on the subject, Hayes claims that monetary policy is unquestionably easing.
Hayes believes the recently established Federal Reserve’s Bank Term Funding Program (BTFP), which aims to ensure banks meet all withdrawal requests from depositors, may result in a greater Bitcoin rise than the pandemic-related quantitative easing measures if the magnitude is any indication.
“ In response to COVID, the Fed issued $4.189 trillion. With the implementation of BTFP, the Fed implicitly printed $4.4 trillion right away.
Bitcoin rose from $3,000 to $69,000 during the COVID money printing incident. “How will it behave this time?”
“The next Bitcoin rise will be one of the most loathed ever,” Hayes believes of how the expected Bitcoin and crypto surge would be regarded in the mainstream moving ahead. How can Bitcoin and the crypto markets in general rally so dramatically after all that happened in 2022?
Didn’t people understand Bitcoin and those involved with it are scumbags? Aren’t people terrified of the story that Bitcoin caused big bank failures and nearly engulfed the American banking system?”