The Arthur Hayes predictions about Bitcoin’s price rise
The price of Bitcoin holds at the $5,100 level, which is actually drowning out the bearish voices. Arthur Hayes, the CEO of BitMEX, is not always the biggest Bitcoin bull in the room, but he always comes around. He forecasted that the price of Bitcoin could actually reach at least $50,000 in the following two-to-five years.
Clearly, the price of Bitcoin has had the wind at its back in this year, which actually made the cryptocurrency community quick to forgive the wrong calls during the crypto winter.
If that price sounds quite familiar to you, it is because Hayes forecasted that was where BTC was headed in 2018, which he likely came to regret. Since that time, Hayes played it safe, as it was evidenced by his short-term outlook of the price of Bitcoin of $10,000 by the end of this year.
It is actually a relief to hear that he has not abandoned his $50K price target altogether and just pushed it back by several years. He was featured on the Venture Coinist podcast, with Luke Martin, where he actually added that it could go materially higher if the world plays out the way he thinks it is going to play out.
How Arthur Hayes came to this prediction of the price of BTC?
To see how Hayes came to this bullish price prediction of Bitcoin of $50,000, it will help us to look at the bigger picture. He described a financial system in which the Federal Reserve of the United States is once again printing money, and which created “silliness” in the financial markets. In turn, such “silliness” spilled over in the crypto market as the risk appetite of the increases of investors.
To cover the bases, he took in consideration the possibility that the price of Bitcoin retests $2,000 to $3,000 from the current level before quickly shooting up to $10,000 by the end of this year. He even threw out the $20,000 price level.
However, Bitcoin is competing with a robust pipeline of tech Initial Public Offerings, starting with Lyft, which incidentally fell flat, and extended to the likes of Uber, as well as Pinterest. This could even put crypto on the back burner of investors until later in 2019 when BTC becomes the shiny new thing once again.
Hayes said that that is when he thinks they can really see some gains rack up in the market. The question then is, why the two-to-five-year time horizon for the price prediction of Bitcoin?
Hayes laying the groundwork for a future with crypto
Hayes pointed out to a future in which the financial privacy will disappear in the following half-decade, as the governments worldwide would ban cash. The appearance of mobile payments pushed cash lower on the totem pole, and that also gave centralized parties a window into the spending habits of customers, as well as governments more control. He said that that is where he really sees the value proposition of Bitcoin finally clicking in the head of everyone.
Regardless of the fact if the prediction about the price of Bitcoin of Hayes will come true or not, he is laying the groundwork for a future with cryptocurrency. His company BitMEX backs a mysterious startup which is building a product to give investors the chance to invest in the S&P 500 index with BTC via swaps. He even explored integrating cryptocurrency transactions in the fixed income markets.
As for Bitcoin, you should not let the poker face of Hayes fool you. His company, BitMEX, generates revenue on trading volume regardless of the fact if the price moves higher or lower.