Bitcoin’s Price Could Reach $1 Million, Says Controversial BitMEX Co-Founder
Arthur Hayes, the controversial co-founder of BitMEX, has once again made a bold prediction about the future price of Bitcoin (BTC).
According to Hayes, the cryptocurrency could eventually reach a price of $1 million. This is not the first time he has made such a prediction; in fact, Hayes has made numerous similar claims in the past.
Hayes also believes that another regional bank will soon face liquidity issues. He points to the recent collapse of First Republic Bank as evidence that more financial institutions could be in trouble.
According to Hayes, the Federal Reserve’s decision to raise interest rates is likely to trigger further bank failures. He predicts that a bank with a loan book full of large illiquid CRE (commercial real estate) loans is most at risk of collapsing next.
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Seems like the Fed still wants to hike 0.25% at its meeting this week. They still don't get it, or maybe they do and are just hoping and praying the market is stupid. Doesn't matter either way, a rate hike almost gtees another non-TBTF will bite the dust this week. pic.twitter.com/2nZy900hJd— Arthur Hayes (@CryptoHayes) April 30, 2023
The crisis in the banking sector, Hayes suggests, could have wider implications for the global economy. To take advantage of this situation, Hayes plans to purchase out-of-the-money short-dated puts on US banks with the largest CRE portfolios.
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I will be looking through my sell-side research for a chart that shows the US banks with the largest CRE portfolios. I will then take a hard look at 50%-75% OTM short-dated puts on these banks to be purchased after the Fed meetings.Yachzee!!
BTC=$1mm— Arthur Hayes (@CryptoHayes) April 30, 2023
READ MORE: Biden Expresses Concerns Over US Banking System – Bitcoin Prices Drop
He believes this could help drive the price of Bitcoin up to $1 million.
Nonetheless, Hayes’ professional trajectory has been shadowed by turbulence. In the previous year, he and Benjamin Delo, another high-ranking BitMEX official, admitted to breaching the Bank Secrecy Act.
They were charged with neglecting to set up measures to prevent money laundering on their platform. Hayes was subjected to six months of home confinement, two years of probation, and a financial penalty of $10 million.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
