Arthur Hayes, former CEO of BitMEX, has forecasted a significant surge in Bitcoin's value to between $750,000 and $1 million by 2026. This increase is anticipated due to expected government intervention, inflation, and an upcoming financial crisis resembling the Great Depression. Hayes identified triggers for this crisis as growing government debt, declining productivity, excessive money printing - referred to as "toilet paper money" - and structural issues within the economy.
The insolvency of the U.S. banking system and a yield curve inversion in U.S. bonds were also highlighted as contributing factors. Despite this grim outlook, Hayes views Bitcoin as a suitable alternative investment given its fixed supply and high return potential.
Looking ahead to mid-2024, Hayes anticipates that the approval of a spot Bitcoin ETF (TSX:EBIT) and a halving event will propel Bitcoin's price to an all-time high of $70,000. He also predicts an upcoming "Double Happiness" effect—a crypto bull market from 2023 to 2026 driven by increased fiat liquidity and AI commercialization—benefiting cryptocurrencies like Filecoin.
Hayes further cautions investors about the historical pitfalls of excessive debt while simultaneously highlighting the unique correlation between the crypto market and happiness. Despite these challenges, he foresees Bitcoin's short-term stability within $25,000 to $30,000 this year. However, he warns investors to be prepared for a considerable price drop following every bull market.
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