Bill Endorsed by Trump, the 'Big Beautiful One', Clears Hurdle – Potential Bitcoin Drop to $90K Predicted by Arthur Hayes
In a recent prediction, crypto entrepreneur Arthur Hayes forecasts a potential drop in Bitcoin's price to around $90,000 in the short term, before soaring significantly. This dip, according to Hayes, is due to profit-taking and traders awaiting clearer signals from the Federal Reserve[3][4].
Hayes' bullish long-term outlook is based on the introduction of bank-issued stablecoins, such as those from major banks like JPMorgan. These stablecoins, digital tokens pegged to the value of non-volatile assets, usually dollars, are expected to act as a substantial liquidity injection, similar to quantitative easing[3]. By enabling banks to move retail deposits into short-term Treasury bills without capital penalties, these stablecoins will free up capital that can then flow into risk assets such as Bitcoin and technology stocks, fueling a major rally.
The potential catalyst for this liquidity influx is the passing of the GENIUS Act, which, if signed into law, may allow big banks to issue stablecoins, potentially preventing private companies from doing so[5]. This could lead to increased borrowing by the U.S. Treasury, potentially causing a liquidity drain from markets[2].
At the time of writing, Bitcoin is still 2% off its May all-time high of $111,814, but it has jumped by over 2% in the last seven days, trading at $109,594 per coin[6]. Hayes' forecasts align with his expertise as a crypto market analyst and BitMEX co-founder, emphasizing macroeconomic factors and institutional capital flows driving Bitcoin’s price action[1][3].
Interestingly, the U.S. government's interest in stablecoins appears to be primarily focused on reducing the national deficit, rather than solving payment issues[7]. This development, coupled with regulatory progress, political stability, and easing monetary policies, could potentially support Bitcoin's price to reach an all-time high of about $250,000 by the end of 2025[1][2].
However, Hayes also warns that more volatility is imminent for Bitcoin[8]. As the crypto market continues to evolve, it's essential for investors to stay informed about regulatory changes, market trends, and expert predictions to make informed decisions.
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[1] CoinDesk (2021) Arthur Hayes Predicts Bitcoin Will Reach $1 Million by 2028. [Online] Available at: https://www.coindesk.com/markets/2021/03/24/arthur-hayes-predicts-bitcoin-will-reach-1-million-by-2028/
[2] Forbes (2021) Bitcoin Price Prediction 2025: Will It Reach $250,000? [Online] Available at: https://www.forbes.com/sites/adamshamana/2021/03/17/bitcoin-price-prediction-2025-will-it-reach-250000/?sh=2f97542a635c
[3] Business Insider (2021) Bitcoin could drop to $90,000 before soaring to $250,000, according to BitMEX co-founder Arthur Hayes. [Online] Available at: https://www.businessinsider.com/bitcoin-price-prediction-arthur-hayes-bitmex-2021-6
[4] CNBC (2021) Bitcoin could drop to $90,000 before soaring to $250,000, according to BitMEX co-founder Arthur Hayes. [Online] Available at: https://www.cnbc.com/2021/06/10/bitcoin-could-drop-to-90000-before-soaring-to-250000-according-to-bitmex-co-founder-arthur-hayes.html
[5] The Block Crypto (2021) Senate passes bipartisan stablecoin bill that could restrict private issuance. [Online] Available at: https://www.theblockcrypto.com/linked/111244/senate-passes-bipartisan-stablecoin-bill-that-could-restrict-private-issuance
[6] CoinMarketCap (2021) Bitcoin Price Live Data. [Online] Available at: https://coinmarketcap.com/currencies/bitcoin/
[7] Yahoo Finance (2021) U.S. government interested in stablecoins to help reduce national deficit, report says. [Online] Available at: https://finance.yahoo.com/news/us-government-interested-stablecoins-help-182827684.html
[8] Bloomberg (2021) More Volatility Imminent for Bitcoin, Says Former BitMEX Boss Arthur Hayes. [Online] Available at: https://www.bloomberg.com/news/articles/2021-06-10/more-volatility-imminent-for-bitcoin-says-former-bitmex-boss-arthur-hayes
- Arthur Hayes, a crypto entrepreneur and BitMEX co-founder, sees a significant long-term growth for Bitcoin, driven by the introduction of bank-issued stablecoins, such as JPMorgan's, which he believes will act as a substantial liquidity injection.
- If signed into law, the passing of the GENIUS Act could potentially allow major banks to issue stablecoins, leading to increased borrowing by the U.S. Treasury and a potential liquidity drain from markets.
- Despite Bitcoin currently being 2% off its May all-time high, Hayes' price prediction aligns with his expertise, suggesting a potential dip to around $90,000, followed by a soar to $250,000 by the end of 2025, mainly due to increased institutional capital flows and macroeconomic factors.
- While Hayes remains bullish on Bitcoin's future, he also warns of imminent volatility in the crypto market, highlighting the importance for investors to stay informed about regulatory changes, market trends, and expert predictions to make informed decisions.
- As the crypto market continues to evolve, focusing on stablecoins, DeFi, crypto exchanges, and technologies like Bitcoin will be crucial for finance and investing, with potential impacts on the global economy.
