BitMEX co-founder CEO Arthur Hayes is forecasting a massive Bitcoin (BTC) rally and a major pivot from the world’s central banks.
Reacting to the news that the People’s Bank of China has reduced the Reserve Ratio Requirement (RRR) by 0.25%, Hayes seet he’s targeting a $1 million price tag for Bitcoin.
Hayes cites China’s move as a signal that more government intervention and infusions of capital are coming.
The Reserve Ratio Requirement is the amount of reserves that a commercial bank must maintain as a percentage of their deposits.
When the requirement is lowered, the amount that commercial banks can lend or invest rises.
In a new essay on the subject, Hayes says that the loosening of monetary policy is undoubtedly on the way.
Zeroing in on the recently created Federal Reserve’s Bank Term Funding Program (BTFP) aimed at ensuring banks meet all withdrawal requests by depositors, Hayes suggests it will lead to a larger Bitcoin rally than the pandemic-related quantitative easing measures if the amount is anything to go by.
“The Fed printed $4.189 trillion in response COVID. Right off the bat, the Fed implicitly printed $4.4 trillion with the implementation of BTFP.
During the COVID money printing episode, Bitcoin rallied from $3,000 to $69,000. What will it do this time?”
On how the projected Bitcoin and crypto rally is likely to be received in the mainstream moving forward, Hayes says,
“The ensuing Bitcoin rally will be one of the most hated ever. How can Bitcoin and the crypto markets in general rally sharply after all the bad things that happened in 2022?
Didn’t people learn Bitcoin and those associated with it are scumbags? Aren’t people afraid of the narrative that Bitcoin caused the failure of large banks, and almost consumed the US banking system?”
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Source: https://dailyhodl.com/2023/03/17/bitcoin-btc-will-reach-1000000-amid-major-move-from-central-banks-according-to-bitmex-founder-arthur-hayes/