BitMEX co-founder Arthur Hayes is doubling down on a prediction that Bitcoin (BTC) is destined to reach a seven-figure price.
Hayes says that a monetary policy tool known as the yield curve control (YCC) will act as a catalyst for Bitcoin to reach $1 million, a gain of around 2,738% from the current level.
Central banks use the yield curve control to influence the long-term interest rate level by buying long-term bonds as much as possible to prevent the rate from rising above the intended target. According to Hayes, the entire United States government is enabling a loose monetary policy environment even as the Federal Reserve is tightening.
Bitcoin is trading at $35,230 at time of writing.
The BitMEX founder first predicted a seven-figure Bitcoin earlier this year in March in an essay. At the time he argued that China’s loosening of its monetary policy would trigger Bitcoin to explode to $1 million.
Hayes also says that the decision by the Federal Reserve mid-this week to pause the hiking of interest rates suggests that it’s “time to pump financial assets.” According to the BitMEX founder, the Fed’s decision would trigger other central banks to ease monetary policy.
“Over to you BTC, let’s… go!
I shall increase the pace of my rotation out of treasury bills and into BTC and shitcoins.
Now that the Fed has paused over two meetings, every other central bank has cover to print. Expect massive stimulus from China, Europe, and Japan.“
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