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The price of bitcoin has fallen from highs of around $43,000 to under $38,000 per bitcoin in recent days as crypto bulls and bears battle for control of the market. Other major cryptocurrencies including Ethereum, BNB
Now, Arthur Hayes, the co-founder of bitcoin and crypto exchange BitMEX, has explained how he sees the price of bitcoin eventually hitting $1 million — a much more bullish price prediction than the one he made earlier. early this month.
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“The federal government will soon be paying more interest on its debt than it receives in tax revenue if it is forced to pay a much higher interest rate than it is today,” Hayes wrote in his latest BitMEX blog, calling it the “beginning of a catastrophic insolvency loop” that could push the price of bitcoin to $1 million per bitcoin by 2030.
Last week, Federal Reserve Chairman Jerome Powell signaled that the US central bank plans to act aggressively to fight inflation in the coming months. Powell said a half-point interest rate hike “will be on the table” when the Federal Reserve meets on May 3, sending US Treasury yields to levels not seen since late 2018. , as fears mounted that a sharp monetary tightening could trigger a recession. .
“This week we start with China which is causing additional growth concerns,” said Mohamed El-Erian, chief economic adviser at Allianz. CNBC. “We now have growth and inflation issues and that’s why you don’t just see stock market moves, but you see particular moves… in the bond market.”
Hayes pointed to soaring inflation and difficulties for the European Union’s European Central Bank (ECB) to raise interest rates aggravating the “catastrophic loop” scenario.
“The catastrophic loop will usher in $1 million worth of bitcoins and [a gold price of] $10,000 to $20,000 by the end of the decade,” predicted Hayes, who is awaiting sentencing after he and his BitMEX co-founder Benjamin Delo admitted in February that they had not put implementation of anti-money laundering controls at BitMEX.
The price of gold has climbed nearly 5% through 2022 and hit all-time highs even as the price of bitcoin remains around 40% below its 2021 high.
“We need to campaign for interested flags to save some of their current account surplus in bitcoin so that farm-to-table bitcoin economies grow around the world,” Hayes added.
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However, earlier this month, Hayes revealed he was betting on a bitcoin and ethereum price “crash” by June, writing that the bitcoin, ethereum and crypto markets “will drive stocks down as we head into recession, and stocks up as we work our way out of it.”
Other bitcoin and crypto market watchers have also pointed to recent price volatility, though most of those in the crypto industry remain bullish.
“Bitcoin price has been very erratic lately with a wide move from a $38,000 support level to a $41,000 resistance level,” said Alexander Mamasidikov, co-founder of mobile digital bank MinePlex. , in e-mail comments. “Over the next week, however, we can expect bitcoin price to form stable support at $41,000.”