Arthur Hayes Predicts Bitcoin to Reach $1 Million with Fed Policy Shift

Veteran crypto investor Arthur Hayes predicts a potential Bitcoin price rally to $1 million. This forecast is linked to the US Federal Reserve's consideration of a "third mandate" involving yield curve control.

The Fed's traditional dual mandate focuses on price stability and maximum employment.
A proposed "third mandate" would include moderate long-term interest rates, allowing for greater intervention in the bond market.
This could lead to increased liquidity, benefiting risk-on assets like US equities and cryptocurrencies.
Stephen Miran, nominated by former President Donald Trump, highlights this statutory requirement for stronger market interventions.

Christian Pusateri notes that tighter control over money prices may push capital towards Bitcoin as a hedge against global financial instability.

Lowering long-term interest rates through measures like quantitative easing and bond buybacks could also reduce government borrowing costs, potentially stimulating the crypto market.