Bitcoin (BTC) could see its value soar between $750,000 and $1 million by 2026, according to BitMEX founder Arthur Hayes.
In a recent appearance on Impact Theory with Tom Bilyeu, Hayes outlined his reasons behind this bold prediction.
Hayes believes that the U.S government’s pattern of intervening in every economic crisis with a bailout is creating structural problems in the economy.
He said this leads to an endless cycle of central bank printing, causing inflation and preventing the economy from experiencing natural market cycles of growth and correction.
Hayes also pointed to mounting government debt, a large amount that needs to be rolled over, and diminishing productivity as potential catalysts for Bitcoin’s move into six-figure territory.
He cited the $7.75 trillion in U.S debt that must be rolled over by 2026 and the yield curve inversion in U.S bonds as future contributors to inflation.
Hayes stated that the U.S banking system is functionally insolvent, which he believes will exacerbate the situation.
Despite the bleak outlook on the U.S and global economy, Hayes remains optimistic about Bitcoin’s future, placing its estimated value at $750,000 to $1 million by the end of 2026.
He revealed that either a financial crisis that pushes rates closer to 0% or a government that keeps raising rates will spur people to seek better returns elsewhere, including Bitcoin.
Hayes also mentioned the potential approval of a spot Bitcoin ETF in the U.S, Europe, and possibly Hong Kong, plus the halving event, as factors that could push Bitcoin’s price to a new all-time high of $70,000 by mid-2024.
However, Hayes does expect a 70% to 90% drawdown to occur in BTC price, similar to what has happened after each bull market.
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