Maelstrom Chief Investment Officer Arthur Hayes made one of his boldest forecasts for Bitcoin, projecting that the asset could reach $3.4 million within three years.
In a Sept. 23 note, he stressed that his prediction rests on the possibility of Donald Trump’s administration embracing aggressive monetary expansion through yield curve control.
According to him:
Hayes explained that US fiscal pressures are set to intensify, with annual deficits of roughly $2 trillion expected through 2028.
That shortfall, combined with the need to refinance maturing debt, could drive new Treasury issuance above $15 trillion during the period.
Meanwhile, Hayes expects the Fed to step in as the primary buyer of these debts.
Hayes pointed out that the US authorities had absorbed about 40% of government borrowing to stabilize markets during the COVID-19 crisis. He expects the same scenario to occur now as overseas investors become less willing to finance US obligations.
According to him:
He estimated that combined credit creation by the Fed and the banking sector could swell significantly if that occurs.
Considering this, Hayes linked this liquidity flow directly to Bitcoin’s valuation, estimating a slope of 0.19 for BTC’s price appreciation per dollar of credit growth.
The implication, he said, is that every trillion printed brings the top crypto meaningfully closer to the multi-million dollar range and his prediction of $3.4 million.
Despite the bold projection, Hayes tempered expectations by admitting that Bitcoin price may not reach the $3.4 million mark. Instead, he emphasized that direction matters more than precision.
He stated:
As of press time, Bitcoin trades near $112,927, about 9% below its August all-time high of $124,167, according to CryptoSlate data.
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Source: https://cryptoslate.com/arthur-hayes-forecasts-bold-3-4-million-bitcoin-bet-for-2028/
