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- Arthur Hayes predicts Bitcoin will hit $1 million due to Japan’s stimulus and possible QE shift.
- Japan’s new economic measures could lead to more money printing, boosting Bitcoin’s value.
- As Bitcoin hits a four-month low, whales re-enter the market, signaling renewed interest in Bitcoin.
Arthur Hayes, the co-founder of BitMEX, has made a very bold prediction concerning the future of Bitcoin. He reckons that Bitcoin would skyrocket to $1 million following the recent economic stimulus of the Japanese economy. This is predicted following the announcement by new Prime Minister of Japan Sanae Takaichi to fight inflation and help households.
On Tuesday, Takiichi announced another economic stimulus package. This proposal contains subsidies on electricity and gas and business grants to advance wages. Hayes believes that the moves indicate that Japan might be about to start printing lots more money and that would lead to a rise in the price of Bitcoin. He says that such moves will cause a dramatic increase in the value of Bitcoin, and it will take off to the $1 million mark.
Arthur Hayes Foresees $1M Bitcoin with Japan’s Economic Shift
Hayes announced his prediction in an X post in which he wrote, Let’s start printing money to give out to people so they can afford food and energy. He pointed out that this would drive up the liquidity in the market to the advantage of Bitcoin. Hayes has long held the view that inflationary policies such as those in Japan can raise the price of Bitcoin as they stimulate more demand for other assets.
The yen, however, dropped to a one-week low on Tuesday, after Takachi assumed office as the first female prime minister of Japan. This decline was indicative of unpredictability in the market, as investors were unclear on the course that Japan would take in terms of monetary policy.
Nevertheless, Hayes is optimistic. He also thinks that one day Japan will move from their current quantitative tightening (QT) policy to quantitative easing (QE), which would initiate the soaring success of Bitcoin.
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BOJ’s Shift from QT to QE and Bitcoin’s Outlook
The Bank of Japan (BOJ) has been venturing into QT, which cuts down the money supply by selling bonds. Nevertheless, when the BOJ attains its inflation target of 2%, many analysts opine that it will switch back to QE. QE is the central bank pumping money into the economy to help boost spending. Hayes reckons that this action would be a boost to Bitcoin and other risk assets.
Meanwhile, mega-investors, also called whales, have taken another interest in Bitcoin. Following the fall of Bitcoin to a four-month low of $104,000 last Friday, the whales started to re-enter the market. These investors were putting tens of millions into decentralized exchanges, which is a good sign of hope in Bitcoin.
Source: Lookonchain
With the next monetary policy meeting that is scheduled to take place in Japan on October 29, everybody will be looking at whether it will change. With BOJ moving towards QE, Hayes forecasts a $1 million Bitcoin can become a reality in the near future.
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