BitMEX Co-Founder Predicts Bitcoin Price Will Reach New Heights

Arthur Hayes, co-founder of BitMEX, has made a bold prediction about the future price of Bitcoin. In an essay titled 'The Butterfly Touch,' he argues that the next Bitcoin rally will be driven by large macro forces rather than short-term trading signals.

Hayes points to rising artificial intelligence infrastructure spending as one of the main drivers behind the shift in global credit conditions. He also notes that governments, banks, and corporations are entering another large credit cycle, which will require more lending and looser credit conditions over time.

The co-founder links Bitcoin's outlook to geopolitical instability, stating that rising defense budgets, disrupted supply chains, and competition for critical commodities will weaken the long-term purchasing power of fiat currencies. He believes that Bitcoin and other crypto assets may benefit from this shift as they sit outside traditional sovereign debt systems and have limited supply.

Bitcoin's price is predicted to reach $126,000, according to Hayes' forecast, if liquidity continues expanding and risk appetite returns to the crypto market.