Former BitMex CEO Arthur Hayes expressed his opinions on the state of the economy and forecasts for the price of Bitcoin in a recent episode of the What Bitcoin Did podcast. Hayes, overseeing the Maelstrom crypto fund, expects major Bitcoin volatility due to the potential U.S. financial crisis and rising debt. He believes it could create a “powder keg” situation in the second half of this year.
Hayes identifies quantitative easing, involving increased money supply, as one main driver of the event. He also points to a growing sense of societal dissatisfaction as another key factor. He predicted that these elements might cause the prices of stocks and cryptocurrencies to drop significantly. While he believes Bitcoin will benefit, he expects significant volatility and no new all-time high (ATH) in 2023.
“I don’t think we get up to $70,000 this year, I think next year is when we cross that barrier, then we get the blow-off top [2025], [2026] and then it’s Armageddon.”
Despite Hayes’ pessimistic outlook, some analysts have had more encouraging things to say about the near-term price of Bitcoin. The head of market analysis at the cryptocurrency exchange Swyftx, Tommy Honan, hypothesized that a debt agreement relief might entice traders back into the market and result in a major uptick in Bitcoin’s price.
Hayes talked about Bitcoin and shared some of his investment tactics. He expressed interest in staking Ether (ETH) and in keeping a close eye on the evolution of Bitcoin Ordinals. In addition, Hayes disclosed his investment in Pepe (PEPE), a meme coin featuring a frog theme. The coin has experienced substantial gains since its introduction in April.
📉 Former @BitMEX CEO Arthur Hayes is expecting to see more #Bitcoin volatility later this year.
— Walletor (@walletorapp) May 29, 2023
In the past, Arthur Hayes has developed a reputation for making audacious price forecasts. Despite some inaccurate predictions, his cryptocurrency market analyses continue to gain recognition from professionals and enthusiasts.
Market participants will keep a close eye out for the potential economic and regulatory issues that Hayes mentioned as the year goes on since they could have an impact on the course of Bitcoin’s price and the trajectory of the cryptocurrency market as a whole.
