Former BitMEX CEO Arthur Hayes has made a bullish prediction about Bitcoin's potential price.
According to Hayes, Bitcoin could hit a value between $750,000 to $1 million by 2026, a figure that outpaces most current forecasts.
The key reasons
Hayes believes that the confluence of several key factors could propel Bitcoin to these unprecedented heights.
First, he anticipates a financial crisis that could see rates dropping to zero, or a scenario where rates increase, but not as swiftly as governments' spending rates.
In such a situation, Hayes suggests that Bitcoin could be valued at around $70,000 by the end of 2024, driven in part by the crypto halving event.
He also foresees the launch of multiple exchange-traded funds by major asset managers in the U.S., Europe, and possibly Hong Kong. Hayes explains, "That's when the real bull market starts."
He envisions not just Bitcoin but also other financial assets, including stock indices like NASDAQ and S&P, reaching record levels.
China's stance on crypto
Turning his attention to China, Hayes addressed the perceived crackdown on cryptocurrencies in the country.
Contrary to the popular belief that China has completely banned cryptocurrencies, Hayes suggests that the reality is more nuanced.
China has indeed made it challenging to trade crypto by ousting exchanges, but its citizens still own Bitcoin.
The Chinese government's main concern, Hayes argues, is to maintain social stability. This concern was exacerbated by the potential for local disturbances due to mass speculation in volatile assets like crypto.
Furthermore, the environmental impact of Bitcoin mining and its significant electricity consumption also played a role in China's stringent measures.
Hayes has stressed the unique position of Hong Kong, which may serve as a pivotal player in the crypto space, given the geopolitical and technological considerations.