- Popular crypto veteran Arthur Hayes says it’s possible for Bitcoin to cross the $1 million threshold.
- Hayes believes that the Federal Reserve’s new Bank Term Funding Program will pump BTC massively.
- The $1 million projection became popular after former Coinbase executive Balaji Srinivasan made a public bet on the same.
Arthur Hayes, the popular crypto veteran who founded crypto exchange BitMEX, believes that Bitcoin has the potential to cross the million-dollar threshold. In a recent podcast with Bankless, Hayes shared his thoughts on the United States Federal Reserve’s new banking policy and its potential impact on the prices of crypto assets.
Hayes: Bitcoin will benefit from the Bank Term Funding Program
According to Arthur Hayes, BTC will achieve this remarkable valuation thanks to the Federal Reserve’s new Bank Term Funding Program (BTFP), which allows banks, credit unions, and other eligible depository institutions to borrow funds for up to one year, using agency debt, U.S. Treasuries, mortgage-backed securities, etc, as collateral. The BFTP recently facilitated a $210 billion bailout of the big four U.S. banks i.e. JPMorgan Chase, Bank of America, Wells Fargo, and Citibank, by letting them borrow against their negative collateral value.
Hayes believes that this funding program will induce a “merry-go-round” effect wherein American banks will have an unlimited supply of cash from the Federal Reserve in exchange for holding government bonds. The BitMEX founder believes that this “sinister” program will pump Bitcoin to $1 million.
It will be profitable for the banks to have a deposit base, buy every single insurance they can of US government debt, and if they ever need to give their depositors back money, they give their debt to the Fed, the Fed gives them dollars. So we go on this little merry-go-round and the US government gets to stuff bonds down the throats of the banks and everybody’s happy.”
Arthur Hayes
The $1 million projection for Bitcoin became popular earlier this week after Balaji Srinivasan, an entrepreneur who formerly served as Coinbase’s Chief Technology Officer, made a public bet predicting that BTC would be worth a million dollars within the next 90 days.
