BitMEX co-founder Arthur Hayes believes the Federal Reserve is primed to inject massive liquidity into the US economy.
In an interview on the David Lin Report, Hayes says that between now and 2028, liquidity in the “realm of $9 trillion” will be injected into the US economy, initially flowing into the traditional economic sectors before trickling down to risk assets such as Bitcoin (BTC).
“…And I think the banks are going to free, because they now don’t have to hold all this equity capital against their treasury book, they can lend more into the real American economy. And so you’re going to see the amount of loans going to manufacturing firms increase, which is again… that’s an increase in credit. And that will make its way into crypto as well.”
The BitMEX co-founder says Bitcoin could skyrocket by around 139% from the current price by the end of the year. By 2028, Hayes Bitcoin could go up nearly tenfold.
“So I think that we get to $250,000 by the end of the year. It will be bumpy along the way, obviously. But that’s sort of my end-of-year price target. And then a $1 million Bitcoin.”
On why Bitcoin could outperform other risk assets amid the expected injection of liquidity, Hayes says,
“So Bitcoin has a fixed supply. It’s obviously a much smaller market in terms of market cap. And so you have a lot of things chasing a very small door, then the price goes up on the margin. And so that’s why Bitcoin has been the best performing financial asset in the last 15 years.”
Bitcoin is trading at $104,462 at time of writing.
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