Arthur Hayes Predicts $1 Million Bitcoin Linked to Fed’s Yield Curve Control
Arthur Hayes, co-founder of BitMEX, suggests that the US Federal Reserve's potential move towards "yield curve control" (YCC) could significantly impact Bitcoin's value. This comes after economist Stephen Miran joined the Fed’s Board of Governors. Hayes believes YCC could drive Bitcoin to $1 million.
- Hayes argues the Fed may adopt a "third mandate" focusing on controlling long-term interest rates.
- The concept of YCC involves targeting specific yields on Treasuries, using unlimited buying if necessary, to prevent sharp increases in long rates.
- This approach has been compared to tactics used by Japan since 2016 and briefly by Australia.
- Critics argue YCC could lead to financial repression with inflationary risks.
According to Hayes, capping long-term yields while maintaining wide fiscal deficits could suppress real yields and accelerate fiat debasement, potentially driving investment into assets like Bitcoin.
Bloomberg highlighted that traders are re-evaluating risk due to Miran's comments on managing long-term rates. There's no immediate indication YCC will be implemented, but its consideration is gaining attention as the Fed meets for policy discussions.
At the time of reporting, Bitcoin was trading at $116,694.
