Bitcoin May Reach $125,000 by 2026 End Predicts BitMEX's Arthur Hayes

Bitcoin's price has been a topic of interest among investors and analysts alike. One such analyst, Arthur Hayes, former CEO of BitMEX, has made a bold prediction about the cryptocurrency's future performance. In an interview at Bitcoin Vegas 2026, he suggested that Bitcoin could reach $125,000 by the end of 2026.

The basis for this prediction lies in Hayes' understanding of macroeconomic catalysts that are expected to drive a strong rally in Bitcoin's price. He highlighted two key factors: the Enhanced Supplemental Leverage Ratio and increased defense spending.

The Enhanced Supplemental Leverage Ratio, which took effect on April 1, allows major banks like JPMorgan Chase and Citigroup to hold lower capital reserves against their assets. This, according to Hayes, could unlock additional lending capacity and boost overall market liquidity. The resulting credit expansion is expected to approach $4 trillion.

Hayes also pointed out that the effects of AI-related job displacement, which he described as a hidden form of credit deflation, would be offset by this wave of liquidity. He argued that artificial intelligence has become the new 'subprime' cycle, displacing workers and weighing on tech sector revenues.