Skip to content
- Arthur Hayes predicts Bitcoin will hit $1 million by 2028.
- He expects the U.S. to increase dollar liquidity to support the economy.
- This economic shift could push crypto markets sharply upward.
Arthur Hayes, Chief Investment Officer of Maelstrom, spoke at Token2049 in Dubai with a striking forecast. He believes Bitcoin could reach $1 million by 2028. His confidence stems from one key factor, liquidity.
The government will soon have to inject additional dollars into the economy, in the opinion of Hayes. He compared the situation to previous points of financial pressure. In those instances, interventions by the government created additional liquidity, which stimulated risk assets such as crypto.
Hayes referred to a trend. Central banks react when fear envelops financial markets. In 2022, market panic was responded to by a $2.5 trillion injection through the U.S. repo program. Hayes anticipates a reprise of that to occur in the future now. This cycle of intervention works to the advantage of crypto holders, according to Hayes. Dollars pour into the system and Bitcoin and other assets can appreciate in value.
Buying Treasury Debt Supports Liquidity
Hayes emphasized in his speech the significance of liquidity. He believes that fiscal pressure will compel American officials to increase spending. He described how steps by the government, such as quantitative easing, cannot be evaded in the long run. Increases in interest rates can temper price growth, yet they also temper growth itself.
As growth falters, pressure mounts on financial systems to stabilize. Hayes sees the next wave of liquidity in the dollar not emanating from the central bank itself. Rather, it will be driven by hedge funds and the bond markets.
They can step in to purchase more United States Treasury bonds. By doing so, they help to support the government’s fiscal framework and also enhance market liquidity. Dollars in the economy typically benefit assets, and particularly Bitcoin.
He views this liquidity not only as support but also as fuel. More money in the system, Hayes feels, will encourage investors to return to crypto and equities. He referred to it as the time to “go long,” meaning that over the long run, investing in these assets will reap solid gains.
Hayes Targets $1 Million Bitcoin by 2028
Hayes emphasized that market fear usually brings opportunity. He mentioned that there was a time in the past when there was maximum uncertainty. An example of that was prior to the FTX implosion with increasing interest rates and lack of confidence. Nevertheless, with interventions from the government, markets were supported.
Today’s landscape of trade tensions and political change feels much the same. But Hayes thinks that what we’re seeing may give way to another liquidity bubble. Other market participants may join in against Federal Reserve resistance.
Their actions would put dollars into the network and leave room for Bitcoin to expand. Hayes stands firmly behind his conviction. With more liquidity available, Bitcoin had the possibility of reaching way higher than existing prices. His goal? An ambitious $1 million in 2028.
Related Redaing: “Bitcoin and Ethereum Lead $3.4 Billion Crypto Investment Surge: Weekly Record Update”
