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According to Arthur Hayes, a period of fatal loop has come caused by inflation and the weakening of the dollar and the euro, which will lead to a bull market for bitcoin.
Former BitMEX CEO and well-known bitcoin evangelist Arthur Hayes said on Twitter that a new even more incredible bitcoin bull market awaits us soon. Hayes’ tweet appeared on the social network after the euro for the first time in 20 years equaled the dollar.
Hayes’ statements are not without controversy. However, it has a lot of followers on several social media platforms. For example, in the same Twitter, 273,200 users follow it.
The crypto enthusiast stated:
“The fatal loop has arrived. 1 USD = 1 EUR. Get ready for YCC and $BTC = $1 million. It takes time.”
The Fatal Loop Tightens the Financial World
In April, Hayes published an article on his personal blog in which he analyzes the current chaotic macroeconomic scenario. In his opinion, the weakening of the dollar and the euro will force countries outside the western axis to look for safer assets, such as commodities, in this case gold and bitcoin.
The fatal noose, according to Hayes, came after the European Central Bank (ECB) failed to take effective measures to end the conflict between Russia and Ukraine. Nor has the ECB been able to completely cut Russia off from the international financial system.
“As gold succeeds, so does Bitcoin. Why should any central bank ‘save’ funds in Western fiat currency when its savings can be arbitrarily and unilaterally confiscated by operators of digital fiat money networks?” argues Hayes.
The fall in the value of the euro against the dollar is only the first stage of the Hayes scenario. The main catalyst for change in the financial world will be central banks’ attempt to control the yield curve (YCC) so that governments can repay their debts.
Bitcoin will reach $ 1 million
Hayes’ theory is based on a loss of confidence in the institutions that issue fiat currencies. Banks often start printing money en masse in the hope of preventing countries from insolvency, but this in many cases only leads to a deterioration in the economic situation.
A change in mindset on the part of financial institutions, which he believes will happen sometime in the next decade, will cause a bull market, during which the value of gold can reach $ 10,000, and bitcoin – $ 1 million.
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