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The price of bitcoin has jumped from highs of around $43,000 to under $38,000 per bitcoin in recent days, with crypto bulls and bears fighting for market control. Other major cryptocurrencies – including ethereum, BNB
Now Arthur Hayes, co-founder of bitcoin and crypto exchange BitMEX, has described how he sees the price of bitcoin eventually reaching $1 million — a much more optimistic price prediction than he made earlier this month.
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“The federal government will soon pay more interest on its debt than it receives in tax revenue if it is forced to pay a much higher interest rate than it is today,” Hayes wrote on his latest BitMEX blog, calling it “the beginning of a doom loop insolvency” that could see the price of bitcoin soar to $1 million per bitcoin by 2030.
Last week, Federal Reserve Chairman Jerome Powell signaled that the US central bank plans to act aggressively to fight inflation in the coming months. Powell said a half-point interest rate hike “will be on the table” when the Federal Reserve meets on May 3, sending U.S. Treasury yields to lows not seen since late 2018 as fears rage. bubbled that a heavy monetary tightening could trigger a recession. .
“This week we start with China bringing additional growth concerns,” said Mohamed El-Erian, chief economic adviser at Allianz, CNBC. “We’re now having growth and inflation concerns and that’s why you’re seeing not just movements in the stock market, but also some peculiar movements… in the bond market.”
Hayes pointed to rising inflation and the difficulties faced by the European Union’s European Central Bank (ECB) in raising interest rates as exacerbating the “doom loop” scenario.
“The cycle of destruction will kick off $1 million worth of bitcoin and [a gold price of] $10,000 to $20,000 by the end of the decade,” predicted Hayes, who is awaiting sentencing after he and BitMEX co-founder Benjamin Delo admitted in February that they failed to place anti-money laundering checks on BitMEX.
The price of gold is up almost 5% so far through 2022 and is hitting its all-time highs, even though the price of bitcoin remains about 40% below its 2021 peak.
“We must wave for self-interest flags to save some of their bitcoin current account surplus for farm-to-table bitcoin economies to sprout around the world,” added Hayes.
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However, earlier this month, Hayes revealed that he is betting on a bitcoin and ethereum price “crash” through June, writing that the bitcoin, ethereum and crypto markets “will drive equities lower as we enter the downturn.” , and lead actions upwards as we work our way out of this.”
Other bitcoin and crypto market watchers have also flagged recent price volatility, although most of the cryptocurrency industry remains bullish.
“Bitcoin price has been very erratic lately, with a broad move from a $38,000 support level to a $41,000 resistance,” Alexander Mamasidikov, co-founder of mobile digital banking MinePlex, said in emailed comments. . “Next week, however, we can expect bitcoin price to form stable support at $41,000.”