Ethereum price could go up to $5,000 if Fed pivots to growth, says BitMEX founder

Ethereum price could go up to $5,000 if Fed pivots to growth, says BitMEX founder

Arthur Hayes, the founder of BitMEX, predicted that the price of ETH could go up to $5,000 if the merger upgrade is successful and the Federal ReserveFederal Reserve goes ahead with its pivot.

Hayes also revealed that the current price ofEthereum represents a huge buying opportunity for investors as it is selling 76% less than his model price of $2815.

In an August 5 post, Hayes said that the Fed s pivot toward growth rather than fighting inflation would lead to an expansion in quantity, a situation where the Feds would have to print more money to support the economy.

When Ethereum Merge happens in September, he believes that the digital asset would be able to breach the $5000 mark as it would become a deflationary asset with high demand.

The rate at which Ether is issued per year will be reduced by 90% under the new PoS model The Ether taken out of circulation will increase as the network grows in popularity. All of these factors together should drive the price of Ether up exponentially.

Hayes thinks the merger would be able to push the price ofEthereum to $3562, despite the fact that the Feds backtracked on its decision to support growth by printing more money.

The merger is expected to drive a triple-halving event forEthereum, according to Hayes. Since Bitcoins BTC price has always reacted positively to its halving, one can expect ETH's price to respond similarly.

Hayes said if the Fed pivots its policies and the Ethereum merge fails or fails, there would not be any adverse effect on the asset price, as it would still be able to maintain its current level of $1600.

Several people would be disappointed by the failed promises.

Hayes said that without the excitement of the merger between June 17 and July 26, the price of the digital currency would have gone up by 1.72%, as he arrived at his $1600 prediction.

A merge failure will result in a drop in the price to $1,099. He expects that ETH will rise as much as it did between March 2020 and 2021, when the Fed expands its money supply. Hayes predicted that ETH would likely return to its July 17 low of $1,081, despite the fact that there was no Fed pivot andEthereum Merge failure.