Arthur Hayes Predicts a Crypto Bull Run Fueled by U.S. Treasury Actions
Arthur Hayes, co-founder of BitMEX, believes that U.S. Treasury Secretary Janet Yellen's strategies to manage liquidity will be the key driver for crypto markets, potentially leading to a bull run with Bitcoin reaching $100,000.
In his latest essay, Hayes argues that the Federal Reserve's Reverse Repo Program (RRP) is pushing money out of the Fed's balance sheet and into the market, boosting Bitcoin's value. He also predicts a potential $3.3 trillion liquidity injection in 2025 as banks exchange their reserves at the Fed for higher-yielding T-bills.
Hayes believes the Treasury will inject between $301 billion and $1.05 trillion into the market by year-end through T-bill issuance and spending down the Treasury General Account. This liquidity injection, he posits, will create a "glorious bull market in all types of risk assets, including crypto."
Hayes' Advice for Crypto Investors
Hayes suggests that investors take advantage of the current market weakness and "load up on crypto risk," but also nudges taking profits in October, which he expects to be the peak of market manipulation before the U.S. election.
Looking further ahead, Hayes maintains his long-term prediction of $1 million Bitcoin, suggesting that after the U.S. debt ceiling is raised in early 2025, "the bull market will begin for realz."
While Hayes' predictions are bold, investors should approach them cautiously and consider them as part of a broader investment strategy.
The Future of Digital Assets
The influence of Bitcoin as an institutional asset class will be explored at Benzinga's upcoming Future of Digital Assets event on November 19th.