Bitmex co-founder Arthur Hayes has rekindled the debate over the seven-figure Bitcoin price and presented a new bullish case of cryptocurrency.
His forecasts depend on what he sees as an imminent change in Federal Reserve policies.
Powell’s attitude against a new era of sublims
In a recent post about his X (formerly Twitter) account, Hayes pointed to the comments of Stephen Miran, a recent candidate for the Fed’s board. Comments came at his council hearing. According to the report, Milan said “medium long-term interest rates” would become one of the Fed’s new obligations.
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Hayes interprets this as a strong signal that the Fed is heading towards a YCC policy.
Current Federal Reserve Chairman Jerome Powell is in conflict with the Trump administration over monetary policy. Instead, he has focused more on other missions with maximum employment and stable prices, rather than long-term rates.
However, Powell’s term is set to expire in May next year, and Hayes believes that if Pro Trump numbers are appointed to the next chair, the Fed will open the door for aggressive long-term rate control. He argues that real interest rates are likely to be negative if the Fed adopts YCC.
This scenario leads to a decline in the value of the dollar, causing capital to flow into alternative assets. In this environment, Hayes predicts that Bitcoin could surge to $1 million due to a decline in the dollar’s purchasing power.
A bullish bet on the Trump era
Hayes’ observations are supported by recent official statements from Trump administration officials who repeatedly stressed the need to “easy long-term interest rates.”
Treasury Secretary Scott Bescent also criticized the Fed for expressly dubbing this on September 5th OP-ED for the Wall Street Journal, ignoring its legal mission to maintain moderate long-term interest rates.
Arthur Hayes believes the cryptocurrency market could grow significantly under the Trump administration. In a post in August, he predicted that the current code bull market could be extended until 2026.
He specifically analyzed the possibility that the Trump administration will launch an economic stimulus package in mid-2026.
