BitMEX co-founder Arthur Hayes has doubled down on his hyper-bullish prediction of $1 million per BTC.
The controversial pundit has reacted to the White House’s latest move to inject liquidity into the U.S. housing market.
Hayes claims that the directive to buy $200 billion in Mortgage-Backed Securities (MBS) is a signal that the administration is ready to “run it hot.”
The White House has instructed Fannie Mae and Freddie Mac to purchase $200 billion in mortgage bonds.
The goal is to drive mortgage rates and monthly payments down by narrowing the “spread” on mortgage bonds. This is supposed to make homeownership more affordable.
Fannie and Freddie have roughly $200 billion in cash available for these purchases.
Some market commentators have interpreted this as the White House launching its own version of quantitative easing.
Hayes’s $1 million prediction
Hayes previously argued that the four-year cycle has been superseded by global central bank balance sheet expansion.
At a major industry event like Token2049 in Dubai, he explained that the U.S. would likely follow a model of massive state-directed credit expansion to manage its ballooning national debt, which had surpassed $38 trillion.
If Treasury yields ever spiked, the “money printer” would be deployed at a scale that would make previous efforts look minor.
This could potentially send Bitcoin toward the much-coveted million-dollar mark.
Source: https://u.today/hayes-bitcoin-to-1m
