Arthur Hayes Predicts Bitcoin May Reach $1 Million

Arthur Hayes , former CEO of BitMEX, has reiterated his prediction about Bitcoin reaching a price above $1 million. He cited China’s recent reduction to the reserve requirement ratios (RRRs) as an important factor that will increase the cryptocurrency’s value.

Hayes tweeted a screenshot from a Bloomberg article about China’s decision to lower the RRR of almost all banks by 0.25 percent. This move was made in order to maintain liquidity and support rapid lending growth.

According to U.Today , Hayes had previously predicted that Bitcoin would hit $1 million by 2030. He attributed this milestone to the HODL culture, where people with conviction refusing to sell their holdings, in anticipation of significant price appreciation.

The bullish prediction was made after the euro/dollar reached parity for only the second time in 20 years.

China’s decision not to raise the RRR was seen as an attempt to encourage lending and support the economy’s recovery after pandemic restrictions, a property market slump, and to strengthen its credit rating. Economists think that the reduction will maintain liquidity and the high rate of lending seen in January/February.

The ongoing banking crisis continues to cause uncertainty and fluctuation in global financial markets. This is why the crypto market is experiencing unexpected growth.

Today, Bitcoin prices soared above $26,000 after Silicon Valley Bank filed for bankruptcy. Other cryptocurrencies such as Ether and Dogecoin saw significant gains, as investors worried about the lack of banks access in the U.S.

Hayes has doubled down his prediction that a new crypto bull market is imminent.