Will BTC zoom past $1 million valuation? BitMEX co-founder believes…
Arthur Hayes, the co-founder and former chief executive of crypto exchange BitMEX, recently appeared on a Bankless podcast hosted by David Hoffman. The crypto veteran shared his take on the recent developments in the banking system of the United States. He gave his two cents on how it would affect inflation and the broader economy.
Speaking to Bankless’ Hoffman, Arthur Hayes stated that the U.S. Federal Reserve’s new Bank Term Funding Program (BTFP) is a major factor that will dictate the intensity of inflation and the impact of TradFi policies on crypto.
BTFP is an emergency credit initiative by the Federal Reserve to extend loans to banking and other eligible depository institutions, by accepting U.S. Treasuries, mortgage-backed securities, and more as collateral.
This lending facility was in response to the multiple banking failures over the past few days. Top banking institutions, including JPMorgan Chase, Wells Fargo and Bank of America, have already received more than $210 billion in bailouts through BTFP.
According to Hayes, the BTFP endangers the traditional finance system and everything associated with it. This included fiat currencies, stocks, and bonds. However, the safe havens, which Hayes referred to as “outside money”, will remain unaffected if the Federal Reserve’s money printer takes down the financial system with it.
Outside money like gold, real estate and, more importantly, Bitcoin [BTC], will prevail in such circumstances.
This is where the $1 million valuation for the flagship cryptocurrency comes in. Arthur Hayes believes that the infinite supply of fiat currency is bound to result in significant appreciation for Bitcoin’s price. However, the million-dollar threshold may not come as soon as
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