As Bitcoin Keeps Tanking, Arthur Hayes Joins Chorus of USD 1m BTC Predictors and Warns of 'The Doom Loop'

cryptonews.com:

With the price of bitcoin (BTC) falling lower, former BitMEX CEO Arthur Hayes is joining the ranks of the most bullish bitcoin proponents, with a USD 1m price prediction as part of what he calls “the doom loop” that started with sanctioning Russia over its invasion of Ukraine.

“The shock of canceling the world’s largest energy producer from the dominant Western financial system cannot be undone,” Hayes wrote in a new lengthy essay titled The Doom Loop.

He added that policymakers cannot ignore what he called “the precarious nature” of funds held in the form of Western fiat after Western governments decided to freeze Russian central bank reserves, and said the Doom Loop’s occurrence therefore “is assured.”

“The Doom Loop will usher in USD 1 million Bitcoin and USD 10,000 — USD 20,000 gold by the end of the decade,” Hayes wrote.

Explaining what the doom loop is, the outspoken former exchange CEO said the loop starts when nations with trade surpluses begin to invest their surplus into hard assets such as bitcoin, gold, and other commodities, rather than USD-denominated debt assets.

Hayes predicts that this will force central banks in countries with deficits – mainly the US and the European Union – to engage in so-called yield curve control.

Yield curve control involves an effort by central banks to cap yields so that the government can continue to pay for itself in nominal fiat currency terms. It is thus a way for the government to inflate away debt rather than default on it.

And according to Hayes, it is yield curve control that will get us a bitcoin price of USD 1m “by the end of the decade.”

“[Yield curve control] is the end game. When it is finally implicitly or explicitly declared, it’s game over for the value of the USD vs.