Arthur Hayes predicts bitcoin growth to $ 3.4 million

Arthur Hayes, co-founder of BitMEX, predicts that bitcoin BTC $111,183.00 Mezo Wrapped BTC -0.99% Market capitalization $39.7 million VOL. 24 hours $1.5 billion will grow to $ 3.4 million by 2028, linking it to Donald Trump’s possible policy of controlling the yield curve. The expert foresees a massive credit expansion of $ 15.2 trillion, which could push up the price of the flagship cryptocurrency.

In a new essay, Hayes draws an analogy to World War II, when the Federal Reserve bought up government debt to keep bond yields low and finance military spending. Trump’s team, led by Treasury Secretary Scott Bessent, could use a similar approach to channel loans to industry and defense, which would dramatically increase the Fed’s balance sheet.

The forecasting model is based on observations from the COVID-19 pandemic, when each dollar of credit growth raised the price of bitcoin by about 0.19%. Using this proportion, Hayes obtained a potential target of $ 3.4 million per coin in the face of a new credit impulse.

The expert clarifies that this is not a literal forecast, but rather a direction of movement. He emphasizes that bitcoin performs best when fiat currencies depreciate and investors seek protection from over-issue. An additional factor will be the decline in foreign demand for US debt, which will force the Fed to buy back more than half of new issues.

It is worth noting that such forecasts are highly speculative and based on assumptions about future economic policy. Cryptocurrency markets are known for their volatility, and extreme price predictions rarely materialize in the exact form predicted.

Some analysts doubt that the price of $ 3.4 million is attainable, but even critics admit that the scenario of uncontrolled money printing is positive for bitcoin. The limited issue and scarcity of cryptocurrency can make it an effective tool for preserving capital amid monetary expansionism.