Arthur Hayes, one of the prominent figures in the crypto market, predicted that the price of Bitcoin will reach $1 million by 2028.
BitMEX co-founder Hayes shared this prediction in a speech at the SALT conference in London.
“Bitcoin will be over $1 million and Ethereum will be $20,000,” Hayes said, adding that he expects the crypto market to reach a major peak before the next U.S. presidential election in 2028.
Hayes’ comments came just hours after the price of Bitcoin fell below $100,000 for the first time since May. Bitcoin is currently trading around $103,000, 19% below its all-time high of $126,000 set in October, while Ethereum is trading at $3,340, 32% below its all-time high set in August.
According to Hayes’ analysis, Bitcoin’s rise is due to governments choosing to borrow rather than cut spending. Austerity measures that mean higher taxes are unpopular with voters, so the government chooses to continue borrowing to get re-elected.
An increase in debt means an increase in the supply of fiat currency. In Hayes’ words, central banks are “pushing the currency button.” Hayes argues that, regardless of official statistics, this will lead to higher inflation and Bitcoin will emerge as a hedge against inflation during this period.
“People instinctively understand what’s going on, it’s just that everyone is trying to solve the same problem in different ways,” Hayes said.
The country’s national debt now stands at $38 trillion, the highest since the pandemic, according to U.S. Treasury data. Hayes said it’s highly unlikely that politicians would waive their debts.
“We can solve this problem, but only if we don’t want to get elected,” Hayes said, adding that if the government stopped borrowing and raised taxes, it could lead to deflation on a scale not seen since the 1930s.
*This is not investment advice.
