Arthur Hayes, co-founder of the cryptocurrency exchange BitMEX, has reaffirmed his highly bullish long-term forecast for Bitcoin, predicting its price could reach $1 million per coin. Hayes links this projection directly to recent U.S. government actions aimed at stimulating the housing market.
The catalyst for Hayes's renewed prediction is a move by the U.S. administration to inject liquidity into the housing sector. According to reports, the government has instructed entities Fannie Mae and Freddie Mac to purchase approximately $200 billion in Mortgage-Backed Securities (MBS). This intervention is designed to lower mortgage rates and improve homeownership accessibility by narrowing spreads on mortgage bonds.
Hayes interprets this policy as a signal of continued and aggressive expansive monetary strategy. He argues on social media that such "large-scale credit expansion" reflects a government willing to "run it hot," which will inevitably fuel inflation. In this environment, Hayes believes Bitcoin's fixed supply and decentralized nature make it a prime hedge, driving its value upward. He has previously stated that global central bank balance sheets, particularly the Federal Reserve's, are now the dominant driver for Bitcoin's price, superseding traditional four-year market cycles.
Hayes's rationale extends beyond the immediate housing market move. He points to the U.S. national debt, which exceeds $38 trillion, as a structural pressure that will force the government to rely on further unprecedented stimulus measures, especially if Treasury yields rise sharply. This cycle of monetary expansion, he contends, will propel Bitcoin to new all-time highs.
While this $1 million target is viewed as extreme and controversial by many market observers due to Bitcoin's volatility, Hayes's commentary taps into a broader narrative of Bitcoin as a safeguard against fiat devaluation. The news has reignited debates about Bitcoin's role in the global financial system amidst persistent inflationary pressures.
