Is Bitcoin Ready for a New Explosive Cycle ?
BitMEX co-founder Arthur Hayes believes the Bitcoin price could surge dramatically in the coming years. According to him, this would largely depend on the monetary policy implemented by the US Federal Reserve (Fed).
Hayes emphasizes that during the pandemic, the Fed massively purchased government bonds. This action significantly boosted the money supply. He believes the central bank could repeat this pattern, especially under a potential new Donald Trump presidency. “I believe the Fed will buy fifty percent or more of all newly issued government bonds, as fewer foreign central banks are willing to purchase US debt securities,” he writes.
Indeed, his calculations lead to a projection of $7.66 trillion in new credit created by the Fed by 2028. Added to this would be an additional $7.57 trillion from commercial banks. That’s a total volume of more than $15 trillion in additional credit.
A Historical Correlation Between Credit and BTC Price
Hayes points out that during the pandemic, the Bitcoin price closely followed credit growth, increasing by an average of 0.19% for each additional dollar of credit. If this dynamic repeats, it could theoretically lead to a Bitcoin price of $3.4 million by 2028.
“Do I believe this will happen ? No, but I think the price will be significantly higher than around $115,000 today,” he qualifies. At the time of writing, Bitcoin is trading around $113,000.
Hayes expects more accommodative monetary policy in the United States and a new wave of lending over the next three years to support a fresh rise in Bitcoin’s price. Enough to spark enthusiasm among crypto investors.
Seize the Moment and Accumulate Bitcoin on Bitget
The signal sent by this investor shouldn’t be taken lightly : when a multimillionaire anticipates a Bitcoin explosion, markets take notice. Don’t remain a spectator to this movement. Take a position today and start accumulating BTC before the price reaches new heights. Here’s how to buy Bitcoin on Bitget right now :
- Sign up on Bitget with a valid email address and confirm via the link received.
- Validate your account with ID verification to complete your KYC.
- Deposit USDT, BTC or use your bank card to fund your wallet.
- Select BTC/USDT on the spot market and place an order at the current price or limit order according to your strategy.
