Bitcoin's (BTC) Path to $1 Million Is Still Open, Says BitMEX Co-founder Arthur Hayes

While Hayes believes the end goal is undeniable, he cautions that it won't be a smooth ride.

The path for Bitcoin’s (BTC) journey to $1 million is still open, at least according to BitMEX co-founder Arthur Hayes. While Hayes believes in the ultimate goal, he warns that the ride won’t be smooth.

In his latest essay, titled "Fatty Fatty Boom Boom," Hayes describes the pessimistic state of the U.S. economy, comparing it to the nation's expanding waistline: bloated, unhealthy, and in denial. However, he sees Bitcoin as a potential way out.

Through his pessimistic lens, Hayes highlighted the Federal Reserve's inability to refrain from "turning on the money printing press." He predicts rising inflation, higher volatility, and repeated government interventions – all of which, he says, are fueling Bitcoin's price rise.

In an interview, Hayes elaborated on his views, suggesting that Bitcoin could potentially hit the $150,000 mark this year, before altcoins start to follow the upward trend.

"It looks a lot like 2022," Hayes said, referring to a combination of market fear, global uncertainty, and loose central bank policy. He adds:

"They will go back to printing money. Again."

Next Round: Capital Control

In his essay, Arthur Hayes warns that the U.S.'s next political move will no longer be import tariffs, but a more subtle and hidden strategy: capital controls.

Hayes predicts that as foreign capital begins to flee from U.S. assets – such as bonds, stocks, and property – the government, particularly the White House, may take steps to curb this capital flight. One of them is to tax foreign investments coming into the U.S.

He even suggested the possibility of a 2% annual tax on assets held by foreign investors.

According to him, this policy could generate enough revenue to eliminate income tax for most American voters.

"Trump could eliminate income taxes for the majority of voters," Hayes wrote, highlighting the potential electoral benefits of such a policy.

However, this policy also carries risks. If foreign investors feel disadvantaged by such a tax, they will most likely start unwinding their holdings – which could pressure the U.S. bond market.

Hayes estimates that if the 10-year bond yield approaches the 5% mark, it could be a tipping point for financial markets.

Bitcoin: A Gift From "Lord Satoshi"

In Arthur Hayes's view, Bitcoin is the only real escape from the financial collapse that is slowly unfolding.

He predicted that as Asian investors begin to pull back their capital, sell American assets and strengthen their respective domestic currencies, this will trigger a spike in volatility in the bond market as well as a weakening of the U.S. dollar.

The situation will further squeeze the Federal Reserve into a difficult corner. The cycle keeps repeating itself: more volatility, more money printing, and more outflows of foreign capital.

However, Bitcoin is different. It doesn't rely on a traditional financial system full of licenses and rules. Even in countries like China, where crypto exchanges are banned, peer-to-peer markets are alive and well. Hayes calls it religious:

"Lord Satoshi has rewarded Bitcoin to those who are loyal."

The data supports this view. If just 10% of the total $33 trillion in foreign portfolio assets currently in the United States were diverted to Bitcoin, the market would experience a historic surge.

Hayes stated that a Bitcoin price of $1 million is not impossible and could happen "between now and 2028."

At press time, BTC traded at around $104,162, marking a 0.76% increase over the past 24 hours.

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