Arthur Hayes, CEO of BitMEX, known for his controversial statements, is very bullish about the Bitcoin price in 2019. Hayes still foresees a sharp fall, but believes the Bitcoin price will reach 10,000 dollars at the end of this year. Hayes said:
“The 2019 chop will be intense, but the markets will claw back to $10,000. That is a very significant psychological barrier. It’s a nice round sexy number. $20,000 is the ultimate recovery. However, it took 11 months from $1,000 to $10,000, but less than one month from $10,000 to $20,000 back to $10,000.”
According to Hayes, ties the federal reserve inflation rates to the last bull run, and Hayes thinks the Fed’s recent decision to halt interest rate hikes will most likely start a new bull run. Hayes wrote:
“But things are a changin’. The Fed couldn’t stomach a 20% correction in the SPX. In the recent Fed minutes, the dot plot now shows now rate increases for the rest of 2019. The Fed will start reinvesting its runoff in the third quarter. We are only a hop, skip, and a jump away from an expanding Fed balance sheet.”
Besides the US monetary policy, the moves by the Chinese central bank will also have a positive affect on the Bitcoin price:
“Beijing knows China must rebalance its economy away from credit-fueled fixed asset investment. However, Xi must not have the political cojones to push this sort of painful change through. Therefore, the PBOC said “fuck it” to any attempt to reign in credit growth. The two most important central banks are creepin’ back into a super easy credit regime.”
Hayes thinks it’ll only take a few important shifts in the economy to kick off boom times again. He thinks cryptocurrency will be the last to “feel the love.” The tech sector is scheduling some major IPOs, and these, Hayes thinks, will precede a boom in crypto markets.
