BitMEX co-founder Arthur Hayes, an experienced crypto veteran, predicts that Bitcoin (BTC) will reach $1 million due to changes in the US Federal Reserve’s monetary policy.
Hayes believes that U.S. Federal Reserve Chairman Jerome Powell will have to start lowering interest rates after a series of hikes to tackle inflation and recessionary concerns, which will cause Bitcoin’s price to soar.
He adds that he will be buying all dips in BTC, and the Bank Term Funding Program (BTFP) announced this month to provide liquidity to struggling US banks will also help to drive Bitcoin’s price higher.
Hayes also predicts that the Fed will engage in yield curve control (YCC), a type of monetary policy in which the government buys bonds to cap long-term interest rates at a specific target, and he welcomes the start of financial repression.
He believes that the recent Reserve Ratio Requirement (RRR) reduction by the People’s Bank of China is another sign that an infusion of capital is coming to the markets.
Bitcoin’s price has generally done well when more liquidity enters the markets, and during the COVID pandemic, Bitcoin hit an all-time high (ATH) of $69,045 when the Fed put out stimulus funding. Hayes made a similar prediction for Bitcoin in reaction to recent changes in monetary policy in China, and he encourages people to treat their capital well as it will treat them well.
