BitMEX co-founder Arthur Hayes predicts one catalyst will send Bitcoin (BTC) soaring to seven figures.
Hayes tells His 448,300 followers on the social media platform
He highlights a new Bloomberg article showing that Japan’s Aozora Bank and New York Community Bancorp (NYCB) have suffered major losses due to the weakening US commercial real estate sector.
Hayes predicts that an increase in liquidity, which typically causes risky assets like Bitcoin to recover, will see the crypto king eventually reach $1 million.
“What did the Fed and Treasury do last time when US real estate prices plummeted and banks around the world went bankrupt? Money printer go brrrr. BTC = $1 million.”
Hayes believes The weakness of the commercial real estate sector, combined with the latest problems at banks, could force the Fed and the US Treasury to ease monetary policy sooner or later, even though Fed Chairman Jerome Powell indicated on Wednesday that a rate cut by the Fed in March is unlikely.
“Jaypow (Fed Chairman Powell) and Bad Burl Yellen (Treasury Secretary Janet Yellen) will be printing money very soon.
NYCB announced a ‘surprise loss’ caused by a tenfold increase in credit loss reserves versus estimates. I don’t think the benches have been repaired. 10- and 2-year yields plummeted, indicating that the market expects a renewed bailout for banks to solve the problems. BTFP (Bank Term Funding Program) and discount window will not help as CRE (commercial real estate) and multi-family residential loans are not yet eligible collateral.
Expect BTC to swoon a bit, but if NYCB and a few others dive into the weekend, expect another bailout soon. After that, BTC is off to the races just like the March 2023 price action.”
Bitcoin is trading at $42,857 at the time of writing.
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