Former BitMEX CEO Arthur Hayes attributes the impressive performance of Bitcoin (BTC) as the “best-performing asset in human history” to global monetary strategies, especially money printing, rather than regulatory impacts. He shared these insights during his appearance on The Big Whale on September 30.
Impact of Monetary Policies on Bitcoin
During the discussion, Hayes elaborated on how inflationary fiscal policies have significantly influenced Bitcoin’s ascendance. Despite facing market fluctuations recently, he remains optimistic about Bitcoin’s prospects, predicting that economic instability and political unrest will drive long-term price increases.
Predictions for Interest Rates
Hayes forecasts a drop in U.S. interest rates, potentially falling below 2% by early 2025 due to ongoing political issues and debates over the national debt. He believes that persistent monetary expansion will channel more investments towards cryptocurrencies.
The Ripple Effect of Economic Instability
Hayes commented on the repercussions of heightened economic instability:
“As we print more money to solve problems of particular countries, at some point, people come to blows.”
He conveyed a bullish sentiment regarding Bitcoin and Ethereum, despite market turmoil, and hinted at long-term price targets for Bitcoin that could reach as high as $586,500.
Hayes reiterated that as central banks amplify money supply to tackle economic concerns, Bitcoin is becoming an increasingly attractive hedge against inflation and currency depreciation. He posits that global monetary policy dynamics play a more pivotal role in Bitcoin’s growth than regulatory changes.
A Balanced, Yet Optimistic Perspective
Even with his continued endorsement of Bitcoin and Ethereum, Hayes cautioned younger investors to tread carefully with leveraged trading and to keep a keen eye on their positions to mitigate the risk of liquidation during volatile periods.
Focus on Emerging Blockchain Technologies
In addition to his bullish outlook on Bitcoin, Hayes expressed interest in blockchain initiatives centered around artificial intelligence (AI), predicting these innovations could catalyze the next stage of blockchain development.
He anticipates that the current bullish market trends may persist until 2026 or 2027, barring any significant geopolitical upheavals. Despite his confidence, Hayes remains doubtful about regulatory clarity leading to increased institutional investment, suggesting that financial entities might find ways to navigate regulations if demand exists.
