By
Bhushan Akolkar
April 24th, 2024
Arthur Hayes believes that because of the HODL culture 1 Bitcoin would eventually equal $1 million in about 8 years.
Former BitMEX chief executive Arthur Hayes recently reiterated his $1 million Bitcoin (BTC) price prediction. According to Hayes, the $1 million price point is almost inevitable for the leading digital currency.
Although Hayes is bullish on Bitcoin, the ex-CEO asked his more than 270,000 Twitter followers to be patient as “these things take time”. Previous reports had also stated that Hayes gave a timeline of around eight years for this to happen. This would mean that he foresees a BTC-million-dollar parity by 2030. Hayes’ BTC price prediction in this instance also echoes that of prominent crypto bull Cathie Wood of Ark Invest.
Arthur Hayes Gives Reason Behind Bitcoin $1 Million Parity Forecast
According to Hayes, BTC will be able to reach this price milestone as a result of its HODL culture. Many Bitcoin holders and investors prefer to hold their assets instead of selling, believing that the king coin’s price will appreciate. The HODL culture initially came about as a result of BTC’s rapidly exponential climb to its trillion-dollar status.
However, the largest crypto by market capital may soon have to find other use cases to benefit its miners. This is because these miners will be unable to generate rewards once all Bitcoin tokens have been mined. When this happens, miners may have to rely on transaction fees.
Hayes also predicts that Bitcoin will find its way into the financial fabric of sovereign countries, with El Salvador being the first real test. According to the embattled fintech pioneer, this level of ‘infiltration’ into these nations will happen at an exponential rate.
However, for all his optimism about BTC’s long-term prospects, Hayes remains bearish about the crypto in the short term. Back in April, the Hong Kong-based American banker and entrepreneur suggested that BTC would dip below the $30K threshold by the end of June. Hayes pointed to the Fed’s aggressive tightening policy as the reason for the plunge. In addition, the former BitMEX chief executive also previously predicted that the altcoins could drop by more than 90%. In Hayes’ opinion, the market could bottom out before the Fed reverses course.
Dollar Gains on Battered Euro
Meanwhile, in other news, Hayes mentioned the beginning of the “doom loop” as a result of the near euro and dollar parity. This represents the first time in two decades that both giant currencies are reaching parity.
Precipitating factors for the recent underperformance of the euro include energy concerns as well as recessionary risks. Meanwhile, the US dollar was able to rally on the back of risk aversion that saw it outperform all its peers in developed markets.
The euro recently dropped 1.3% to a low of $1.0053, and has now lost approximately 15% of its value since the beginning of the year.
Last Thursday, the European Central Bank confirmed it raised interest due to soaring inflation, for the first time since 2011.