Former BitMEX CEO Arthur Hayes: “Prepare” for a Huge Bitcoin Rally
Bitcoin is still in a tight range as it trades near the $20,000 to $21,000 range. The cryptocurrency was rejected at key resistance levels and may retest its yearly lows near $17,000.
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At the time of writing, BTC price is trading at $20,600 with a 1.4% loss and 7% gain over the past 24 hours and the past week, respectively.
BTC price is in a downtrend on the 4-hours chart. Source: BTCUSD Trading View
Bitcoin has been trending downward since late 2021, when the cryptocurrency reached an all-time high of $69,000. Since then, the BTC price has lost over 60% of its value and is likely to continue the downtrend in the near term.
However, Arthur Hayes, former CEO of crypto exchange BitMEX, claims that a “doom loop” has begun in the macroeconomic sphere. Via Twitter, Hayes shared the Euro (EUR) daily chart against the US Dollar.
The European currency reached the equivalent of its North American counterpart for the first time in 20 years. Similar to bitcoin, the euro has been trending downward since 2021 and could potentially extend its losses.
This decline was due to the Ukraine-Russia conflict and increased inflation forcing central banks around the world to take action by either shrinking their balance sheets or raising their interest rates. The European Central Bank (ECB) has been unable to take an effective measure.
Thus, contributing to the decline of its currency. This is part of the scenario of a “doom loop” where the euro and the US dollar depreciate in favor of gold and bitcoin.
This scenario emerged when Russia was cut off from the international financial system. In the coming decade, countries and peoples would prefer to buy these commodities as opposed to fiat currency issued by the central bank. Hayes explained:
Just as gold succeeds, so does bitcoin (…) can be done?
The EUR is in a downward trend and parity with the US dollar for the first time since 2003. Source: Tradingview
Will the world turn to bitcoin in the next decade?
This rally in the price of gold and bitcoin could eventually take the asset to $10,000 and $1 million respectively. The described “doom loop” is mostly a “mental shift” in Hess financial institutions, a decline in the only thing that supports fiat currency: trust.
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When there is no trust, institutions and global governments can only do business in a trustless system. Thus, why Hayes predicts such a massive increase in the price of bitcoin. However, this process will take time and may materialize sometime in the next decade.
#DoomLoop has started. 1 USD = 1 Euro. Prepare yourself for YCC and $BTC = $1 million. But please be patient, these things take time.
