In a recent blog post, former BitMEX CEO Arthur Hayes projected that Bitcoin (BTC) will trade at significantly higher prices by the year 2028. While he anticipates that BTC could exceed its current value of approximately $113,000, he cautions against overly optimistic forecasts, deeming a $3.4 million price per coin as excessively bullish.
Hayes attributes the potential rise in Bitcoin’s value to renewed money printing under the Trump administration. He argues that this economic strategy will create conditions conducive to a major uptick in BTC prices. He believes that Trump’s administration will prioritize maintaining the wealth of the established elites, echoing strategies employed by previous presidents. Hayes emphasized the need for a drastic shift in credit allocation to confront what he perceives as growing threats from prominent global powers like Russia, China, India, and Iran.
To facilitate his monetary expansion plan, Hayes argues that Trump must influence the Federal Reserve, particularly concerning its monetary policy and collaboration with the U.S. Treasury. He cites recent controversies surrounding Federal Reserve governor Lisa Cook as indicative of a broader strategy to enable significant money printing that he believes is necessary for transforming the U.S. economy.
While Hayes acknowledges that predicting specific Bitcoin prices is inherently challenging, he draws from historical data to propose that past correlations between Bitcoin prices and credit growth could yield spectacular results. According to his calculations, a nominal increase could lead to predictions reaching as high as $3.4 million, though he stops short of endorsing that figure, instead asserting that the price by 2028 would indeed be “markedly higher” than its current standing.
Hayes is no stranger to ambitious BTC price targets; he has previously referenced a $1 million price target by 2028, driven by factors such as international capital controls and the repatriation of foreign wealth. Last week, he reiterated this prediction while emphasizing that liquidity conditions in the treasury market could catalyze a substantial upward trend in the cryptocurrency landscape.
However, not all market analysts share Hayes’ optimistic view. Andre Dragosch, the European head of research at crypto asset manager Bitwise, criticized the liquidity inflation narrative as ineffective. Current market dynamics suggest high expectations for looser financial conditions, with speculations about potential interest rate cuts by the Federal Reserve in the near future.
As the discourse around Bitcoin’s future unfolds, it remains crucial for investors to approach these projections with caution and conduct their own thorough research before making investment decisions.
