Bitcoin predicted to reach $ 1 million due to bank failures in the US

Former BitMEX CEO Arthur Hayes has suggested that the bitcoin price could soar to $ 1 million due to the bankruptcy of US financial institutions.

In a series of tweets, Arthur Hayes shared his opinion on the current situation with banks and how it could affect the cryptocurrency market. The analyst is confident that the collapse of First Republic Bank will not be the last in the financial sector. Hayes expects other US banks to face liquidity problems as well, as the US Federal Reserve is preparing to raise interest rates again.

According to Hayes, the Fed either «doesn't know what it’s doing or it does and is praying that investors don’t realize it.» In any case, raising rates guarantees the collapse of another bank, Hayes wrote. He suggested that this bank’s loan portfolio will be dominated by illiquid commercial real estate loans.

The co-founder of BitMEX noted that the crisis in the banking sector could trigger macroeconomic shocks that would stimulate the rapid growth of BTC $55,950.57 Bitcoin -1.42% Market capitalization $1.1 trillion VOL. 24 hours $2.64 billion to $ 1 million. The Fed’s reaction to the banking crisis will increase interest in the flagship cryptocurrency and the entire cryptocurrency space. Compared to other savings vehicles, such as gold and real estate, bitcoin may become the most attractive option for investors seeking to protect their savings, Hayes believes

As Arthur Hayes said last week, BTC has every chance of becoming the world’s reserve currency. Hayes predicted that the Federal Reserve and the US government will try to maintain the dominant position of the US currency, but they will not be able to stop the process of its weakening. «Over the past year, the dollar’s use in the global economy has declined. Asian and Latin American countries are entering into agreements with China and India on mutual settlements in national currencies,» the analyst said at the time.