Former BitMEX CEO, Arthur Hayes, has expressed expectations of significant Bitcoin volatility in the latter half of the year, attributing it to a potential “powder keg” explosion arising from the United States banking crisis and soaring national debt. Hayes, who currently manages the crypto-focused investment fund Maelstrom, shared his insights on the What Bitcoin Did podcast on May 26, where he made several predictions regarding the current economic outlook and the price of Bitcoin.
The BitMEX co-founder tips Bitcoin for $70,000 in 2024
One notable prediction from Hayes is that he believes Bitcoin will not reach the $70,000 mark until 2024. He suggests that the year 2025 or 2026 could witness a “blow off top” for Bitcoin, followed by a period of significant decline. Hayes points to two primary drivers for this event: the practice of quantitative easing, which involves increasing the money supply, and broader social unrest. He highlights the banking crisis and the substantial issuance of debt by the federal government as factors contributing to a potentially explosive situation that may unfold in the third or fourth quarter of this year.
The BitMEX co-founder also mentioned the possibility of Bitcoin experiencing volatility in both upward and downward directions, acknowledging the positive long-term impact it could have on the cryptocurrency. This aligns with other analysts’ perspectives, such as Tommy Honan, the head of market analysis at crypto exchange Swyftx, who suggests that a relief in debt concerns could trigger a significant price surge for Bitcoin.
Meanwhile, JPMorgan strategists have indicated that the current price of gold could imply a Bitcoin price of $45,000. They also anticipate the upcoming Bitcoin halving event to support this potential price forecast. However, they caution that regulatory actions against cryptocurrencies and the repercussions of the FTX collapse could limit any substantial upward momentum.
Analysts discuss the potential of Bitcoin amid the issues
Hayes further shared insights into his personal investment strategies, mentioning his interest in staking Ether (ETH) and closely monitoring the development of Bitcoin Ordinals. He also revealed an investment in Pepe (PEPE), a memecoin themed around a frog, which witnessed a significant rally of over 5,000% since its launch on April 14.
The former BitMEX CEO is known for his bold price predictions. In April 2020, he warned of a potential 57% drop in Bitcoin’s price from $7,000 to $3,000, which did not materialize as Bitcoin held steady and even experienced a 28% rally to $9,000 in the subsequent three months. Similarly, Hayes predicted a price of $5,000 for Ether following The Ethereum Merge upgrade, but the immediate aftermath of the upgrade saw a slump in Ether’s price before eventual recovery along with the broader crypto market earlier this year.
The BitMEX co-founder’s latest predictions and observations highlight the potential impact of economic factors and regulatory actions on the price and volatility of Bitcoin. As with any market projection, it is essential to consider various perspectives and monitor unfolding events to gain a comprehensive understanding of the cryptocurrency landscape.
