Arthur Hayes Predicts Bitcoin Reaching $250,000 By Year-End
Arthur Hayes, co-founder of BitMEX, predicts that Bitcoin could reach $250,000 by the end of the year. This forecast is based on a potential shift in control over the Federal Reserve (Fed) influenced by Donald Trump.
- Hayes suggests Trump could gain control of the Fed by appointing aligned members to the Board of Governors, requiring only four out of seven votes.
- This control would enable manipulation of interest rates and bank regulations, potentially leading to increased credit creation and liquidity flowing into digital assets.
- The strategy involves steepening the yield curve, easing supervision, and expanding open market operations, inspired by policies from the 1940s.
- Hayes argues that these changes could drive inflation and economic growth, fueling investments in Bitcoin through stablecoins and new lending activities by regional banks.
- He highlights the political urgency due to narrow Senate margins and upcoming Fed appointments that could change control dynamics post-2026.
Hayes concludes that the debt situation forces either inflation or restructuring, both favoring scarce assets like Bitcoin. He advises against bonds, suggesting investment in hard assets such as Bitcoin or gold might be more prudent under these circumstances.
