Hayes Predicts Bitcoin Will Reach $1 Million

Arthur Hayes, co-founder of BitMEX, has firmly reiterated his optimistic forecast of Bitcoin hitting $1 million. His bold statement comes in response to recent actions taken by the White House to enhance liquidity within the U.S. housing sector.

Key Takeaways

Arthur Hayes, co-founder of BitMEX, predicts Bitcoin could reach $1 million.
The White House plans to purchase $200 billion in mortgage-backed securities.
This initiative aims to lower mortgage rates and enhance affordability for homebuyers.
Some experts view the White House's actions as a form of quantitative easing.
Hayes believes that U.S. monetary policy will drive expansive credit growth, influencing Bitcoin's price significantly.

Hayes Predicts Bitcoin Will Reach $1 Million

The U.S. administration has announced a significant initiative to inject $200 billion into the housing market by purchasing mortgage-backed securities. Hayes interprets this move as a signal of the government’s willingness to aggressively stimulate the economy, which he believes could ultimately lead Bitcoin to reach unprecedented levels.

Main Content

Hayes asserts that the recent directive from the White House to acquire $200 billion in Mortgage-Backed Securities (MBS) indicates a willingness to "run it hot." This initiative involves instructing Fannie Mae and Freddie Mac to engage in the large-scale purchase of mortgage bonds, with the intention of reducing mortgage rates and monthly payments. The administration hopes that lowering the "spread" on these bonds will make homeownership more accessible.

Fannie Mae and Freddie Mac currently have about $200 billion in cash ready for these acquisitions. Analysts in the market are interpreting this as the government embarking on its own form of quantitative easing.

In a previous statement, Hayes mentioned that traditional economic cycles have been overshadowed by the increasing expansion of central bank balance sheets worldwide. During a key industry event, Token2049 in Dubai, he elaborated that the U.S. is likely to adopt a strategy of substantial state-directed credit expansion to tackle its soaring national debt, which has now exceeded $38 trillion.

He warns that if Treasury yields rise sharply, the federal government could roll out its “money printer” at an unprecedented scale. Such actions, he argues, could propel Bitcoin toward the much sought-after $1 million threshold.