Former BitMEX CEO Arthur Hayes has reiterated his prediction that Bitcoin will reach a price of $1 million, citing China's recent cut to the reserve requirement ratio (RRR) as a factor that will boost the cryptocurrency's value.
In a tweet, Hayes attached a screenshot of a Bloomberg article discussing China's decision to reduce the RRR for almost all banks by 0.25 percentage points, a move aimed at ensuring liquidity in the banking system and sustaining rapid lending growth.
As reported by U.Today, Hayes previously predicted that Bitcoin would reach $1 million by 2030, attributing this milestone to the "HODL culture" where users with conviction refuse to sell their holdings in anticipation of significant price appreciation.Back then, the bullish prediction came after the euro and the dollar approached parity for the first time in two decades.
China's decision to cut the RRR is seen as a move to support lending and strengthen the economy's recovery from pandemic restrictions and a property market slump. Economists believe that the cut will help maintain liquidity in the banking system and sustain the rapid pace of lending seen in January and February.
As global financial markets continue to experience uncertainty and fluctuations caused by the ongoing banking crisis, the crypto market is experiencing an unexpected resurgence.
Earlier today, the Bitcoin price surged past $26,000 following the bankruptcy filing of Silicon Valley Bank, with other cryptocurrencies like Ether and Dogecoin also recording significant gains as investors worry about crypto companies' lack of access to banks in the U.S.
With his latest prediction, Hayes doubled down on his earlier statement that another crypto bull market is already here.