Bitcoin and cryptocurrencies—including major coins ethereum and XRPXRP—have rocketed higher in recent weeks (despite a serious Federal Reserve warning).
The bitcoin price has climbed to within touching distance of $50,000 per bitcoin, adding billions of dollars to the combined bitcoin, ethereum, XRP and crypto market—forcing the U.S. government to declare a crypto “emergency.”
Now, as one respected analyst reveals a surprise theory behind the latest bitcoin price pump, crypto trader Arthur Hayes has predicted a Fed flip will cause the bitcoin price to explode to $1 million—something that would give bitcoin a market capitalization of around $20 trillion.
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“It’s time for some bank failures and fresh monetary pow from [Fed chair Jerome] Powell and [U.S. Treasury secretary Janet] Yellen,” Hayes, who founded the Bitmex crypto exchange and now runs a family office fund, posted to X, referring to fears that a sweeping Wall Street that a fresh banking crisis could be around the corner less than a year after the collapse of Silicon Valley Bank. In May, First Republic became the largest U.S. lender to fail since 2008.
This week, New York Community BancorpNYCB (NYCB) stock crashed after it revealed a surprise loss.
“[Powell] says U.S. [economy] and banks [are] strong to very strong,” Hayes added. “NYCB says otherwise. Who is right, the market or the central banker? Time and compounding interest are two things even Neo-Keynesians can’t wish away. The bailout is coming.
Hayes predicted the bitcoin price will rocket to $1 million if the Fed and the U.S. government is forced into another bailout on top of the massive spending it racked up through the Covid pandemic and lockdowns.
Last year, tech investor and former CoinbaseCOIN chief technology investor Balaji Srinivasan made a similar bet that bitcoin would hit $1 million within months but was forced to concede defeat when it failed to rally.
Srinivasan has continued to predict the U.S. dollar will “collapse against bitcoin,” while Russia’s president this week warned the Biden administration is “killing” the U.S. dollar.
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Meanwhile, other bitcoin, ethereum, XRP and crypto market watchers have cheered the latest bitcoin price rally.
“The market has confidently moved into a state of greed, which we also last saw a month ago,” Alex Kuptsikevich, FxPro senior market analyst, wrote in emailed comments.
“Last month’s corrective pullback and early February’s consolidation have helped gather strength for a real breakout. BitcoinBTC has gained almost 10% in the last four days to trade at $46,200. All eyes are now on whether bitcoin can break above the previous highs from which it pulled back shortly after the initial reaction to the launch of spot ETFs.”
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