BitMEX co-founder Arthur Hayes is predicting that one catalyst will trigger Bitcoin (BTC) to soar to seven figures.
Hayes tells his 448,300 followers on the social media platform X {that a} decline in business property costs might quickly immediate the Federal Reserve to inject liquidity into the markets to prop up the economic system.
He highlights a brand new Bloomberg article that exhibits Japan’s Aozora Financial institution and the New York Group Bancorp (NYCB) have racked up huge losses because of the weakening US business property sector.
Hayes predicts a rise in liquidity, which typically causes threat property like Bitcoin to rally, will trigger the crypto king to ultimately hit $1 million.
“What did the Fed and Treasury do final time US property costs plunged and bankrupted banks globally? Cash printer go brrrr. BTC = $1 million.”
Hayes believes that business property weak spot, plus the newest banking troubles, may pressure the Fed and U.S. Treasury to loosen financial coverage sooner fairly than later, regardless that Fed Chair Jerome Powell indicated Wednesday a Fed charge lower is unlikely in March.
“Jaypow (Fed Chair Powell) and Dangerous Burl Yellen (Treasury Secretary Janet Yellen) will likely be printing cash very quickly.
NYCB introduced a ‘shock’ loss pushed by mortgage loss reserves rising 10x vs. estimates. Guess the banks ain’t fastened. 10-yr and 2-yr yields plunged signaling the market expects some kind of renewed bankster bailout to repair the rot. BTFP (Financial institution Time period Funding Program) and low cost window gained’t assist as CRE (business actual property) and multi-family residential loans aren’t eligible collateral … but.
Anticipate BTC to swoon a bit, but when NYCB and some others dump into the weekend, count on a brand new bailout proper fast. Then BTC off to the races similar to March 2023 value motion.”
Bitcoin is buying and selling for $42,857 at time of writing.
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