Arthur Hayes Predicts Bitcoin Surge to $100,000 by Year-End

The value of the leading cryptocurrency is expected to recover from a yen-induced decline and rise to $100,000. This forecast was presented by former BitMEX CEO Arthur Hayes.

In a new essay, the expert explained the impact of U.S. Treasury borrowing and the monetary policy of the Fed on the amount of available liquidity for markets, including digital assets.

The entrepreneur provided a chart showing the relationship between the volume of the reverse repo (RRP) program of the Federal Reserve and digital gold prices.

According to the illustration, when RRP funds decreased—due to the issuance of Treasury bills (T-Bills) with more attractive yields—bitcoin saw an increase, as some of the freed liquidity entered the digital asset market.

This price relationship persisted from April to July, when the U.S. Treasury refrained from issuing short-term securities. This led to an increase in reverse repo and a sideways trend in digital gold prices with several sharp declines.

Hayes noted that the U.S. Treasury plans to issue $301 billion in T-Bills by the end of the year. He is convinced of their implementation due to Treasury Secretary Janet Yellen’s desire to support fellow party member Kamala Harris in the presidential race.

If the above correlation holds, the leading cryptocurrency will quickly recover from the yen-induced drop and surge to $100,000, the specialist indicated.

The former BitMEX CEO separately noted that the recovery of altcoin prices will occur only after bitcoin and Ethereum decisively surpass the $70,000 and $4,000 marks, respectively. In such circumstances, the expert expects to see Solana priced at $250.

“The combination of a rally in the two key cryptocurrencies, inspired by dollar liquidity, at the end of the year will create a solid foundation for the return of the sexy shitcoin party,” commented the entrepreneur.

Hayes anticipates the market will exit its downward sideways trend by September. In his view, Yellen’s “manipulations” will peak in October, a month before the elections. 

The former BitMEX CEO admitted he plans to ride this “monetary” wave to lock in profits on the most speculative positions. He will then consider returning to new purchases after the U.S. reaches its debt ceiling, presumably in January-February.

“Once the ‘charade’ with the U.S. debt ceiling ends, liquidity will flow from the Treasury and possibly the Fed to bring markets back to normal. Then the real bull run will begin. Bitcoin at $1 million remains my base case. The ‘fuel’ for reaching the seven-figure mark could come not only from the Fed’s ‘printing press’ but also from China’s fiscal stimulus ‘bazooka’,” the specialist explained.

Previously, Hayes described the leading cryptocurrency as a more reliable safe-haven asset than gold, due to the absence of national control.

Earlier, the former BitMEX CEO downplayed the importance of the U.S. election outcome for bitcoin’s prospects.