Sure! Here’s the rewritten content with the HTML tags intact:
Arthur Hayes, Chief Investment Officer at Maelstrom, has made one of his most audacious predictions for Bitcoin, suggesting it could hit $3.4 million within the next three years.
In a note dated Sept. 23, he emphasized that this forecast hinges on the potential for Donald Trump’s administration to pursue aggressive monetary expansion through yield curve control.
Hayes stated:
“From now until 2028, the Treasury will have to issue new debt to repay existing debt and cover government deficits.”
He explained that fiscal pressures in the US are expected to escalate, with annual deficits around $2 trillion projected through 2028.
This deficit, along with the necessity to refinance maturing debts, could push new Treasury issuances to exceed $15 trillion during this timeframe.
Moreover, Hayes believes that the Fed will act as the primary purchaser of these debts.
He noted that US authorities absorbed roughly 40% of government borrowing to stabilize markets during the COVID-19 pandemic. He anticipates a similar scenario unfolding now, as international investors become less inclined to finance US debts.
According to him:
“I foresee the Fed purchasing 50% or more of issued debt, as even fewer foreign central banks will be willing to buy treasury debt, knowing that Trump will issue a significant amount.”
He projected that the combined credit creation by the Fed and the banking system could rise dramatically if this occurs.
Taking this into account, Hayes connected this influx of liquidity directly to Bitcoin’s value, estimating a growth rate of 0.19 for BTC’s price per dollar of credit expansion.
The implication, he suggested, is that every trillion dollars printed brings the leading cryptocurrency closer to the multi-million dollar threshold and his projection of $3.4 million.
Despite this ambitious forecast, Hayes moderated expectations by acknowledging that Bitcoin may not actually hit the $3.4 million level. Instead, he underscored that direction is more crucial than precision.
He remarked:
“My aim is to accurately capture the direction of travel and to be confident that I’m betting on the strongest contender, assuming that Trump is serious about printing trillions to fulfill his policy objectives.”
At the time of writing, Bitcoin is trading around $112,927, approximately 9% below its all-time high of $124,167 from August, according to CryptoSlate data.
