BitMEX co-founder Arthur Hayes has projected a dramatic rise in Bitcoin’s price, driven by an expected wave of liquidity injections from the U.S. Federal Reserve.
In a recent interview, Hayes outlined his view that approximately $9 trillion in liquidity could enter the U.S. economy between now and 2028. He anticipates that this capital will initially flow into traditional sectors before filtering into risk assets like Bitcoin.
According to Hayes, recent regulatory adjustments will give banks greater flexibility to lend, as they are no longer required to hold large amounts of equity capital against their Treasury holdings.
This shift is expected to expand credit availability, especially toward manufacturing firms, and eventually into the cryptocurrency sector. He emphasized that increased credit and economic activity would support the broader risk asset landscape, including crypto.
Hayes has set a year-end price target of $250,000 for BTC, representing a 139% increase from current levels. He also predicted a long-term target of $1 million by 2028, assuming the monetary expansion continues as expected.
He argued that Bitcoin’s fixed supply and relatively small market capitalization make it more reactive to capital inflows compared to traditional financial assets. As liquidity increases, he noted, assets with limited supply like Bitcoin are likely to appreciate faster due to the imbalance between demand and available units.
Hayes pointed out that over the past 15 years, Bitcoin has consistently outperformed other asset classes, attributing this to its unique monetary structure. With global financial institutions expected to inject substantial liquidity into the system, he views Bitcoin as being well-positioned to benefit from the next phase of monetary expansion.
Kosta Gushterov
Reporter at Coindoo
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Source: https://coindoo.com/arthur-hayes-predicts-250000-bitcoin-by-year-end-amid-here-is-why/