Arthur Hayes Bitcoin Prediction: Why BTC Hits $200,000?

BitMEX co-founder Arthur Hayes is making a bold bet on Bitcoin’s future, predicting it will surge to $200,000. He believes BTC will break the usual 4-year cycle pattern, influenced by global money trends and an influx of liquidity.

Bitcoin to Hit $200k

In a recent interview with Kyle Chassé, Arthur Hayes stated that Bitcoin will keep its upward momentum, aiming for targets like $150,000, $175,000, and even $200,000 by the end of the 2020s. He urges investors to stay calm, predicting that the current sideways market is merely a precursor to a massive bull run that could last well into 2026. He also voiced against the notion of the 4-year cycle. He added,

“I dont believe in the 4-year cycle. I believe that we can continue ripping through, $150,000- $200,000 Bitcoin because of this massive macro overlay, what is happening right now between now and the end of the decade.”

Notably, Arthur Hayes highlights the current favourable political and macroeconomic conditions, including the potential interest rate cuts by the US Federal Reserve. With inflation remaining stubborn and economic growth slowing down, he expects the Federal Reserve to continue cutting interest rates, injecting more liquidity into the market. This perfect storm of fiscal and monetary policy will create a highly favorable backdrop for the pioneer crypto, with both the cryptocurrency and select altcoins set to thrive amid the flood of liquidity.

Pointing out Trump’s push for interest rate cuts, the BitMEX co-founder stated,

“Every president in U.S. history gets the monetary policy they want. Whether it’s rate cuts through Powell or other liquidity injections, credit will flow, and that’s fuel for Bitcoin.”

BTC Outperforms Other Assets

Further, Arthur Hayes underscored the strength of BTC among global asset classes. Dismissing concerns about the cryptocurrency’s current struggle to maintain its positive momentum after hitting its new all-time high of $124k, he noted that other assets have faced similar challenges to sustain long-term growth. The cryptocurrency's strong potential is underscored by the fact that only a few U.S. tech giants have been able to outperform it consistently.

When compared to BTC , traditional assets pale in comparison, according to Hayes, who believes the cryptocurrency's strength shines through in the face of currency debasement. Pushing back the short-term thoughts on crypto, he said,

“If you thought that you were going to buy Bitcoin and next day you were buying a Lamborghini, you’re probably getting liquidated because it’s just not the right way to think about things. Anyone who bought it two, three, five, or ten years ago is laughing.”