Former BitMEX CEO and well-known bitcoin evangelist Arthur Hayes tweeted that an even more incredible bitcoin bull market is coming soon. Hayes’ tweet appeared on the social network after the euro equalized the dollar for the first time in 20 years.
Hayes’ statements are not without controversy. However, he has a large following on multiple social media platforms. For example, in the same Twitter, 273,200 users are subscribed to it.
The crypto enthusiast stated:
“The fatal loop has come. 1 USD = 1 EUR. Get ready for YCC and $BTC = $1M. But please be patient. This takes time.”
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A fatal loop tightens the financial world
In April, Hayes published an article on his personal blog that analyzes the current chaotic macroeconomic scenario. In his view, a weakening dollar and euro will force countries outside the western axis to seek safer assets such as commodities, in this case gold and bitcoin.
The fatal loop, according to Hayes, came after the European Central Bank (ECB) failed to take effective measures to end the conflict between Russia and Ukraine. Also, the ECB was unable to completely cut off Russia from the international financial system.
“As gold does well, so will bitcoin. Why should any central bank “hold” funds in Western fiat currency when its holdings can be arbitrarily and unilaterally confiscated by operators of digital fiat money networks?” Hayes argues.
The fall in the value of the euro against the dollar is only the first stage of the Hayes scenario. The main catalyst for change in the financial world will be the attempt by central banks to control the yield curve (YCC) so that governments can repay their debts.
Bitcoin will reach $1 million
Hayes’ theory is based on a loss of trust in institutions that issue fiat currencies. Banks often start mass printing money in the hope of preventing countries from becoming insolvent, but in many cases this only leads to a worsening of the economic situation.
A change of mindset on the part of financial institutions, which he believes will occur sometime in the next decade, will trigger a bull market during which the value of gold could reach $10,000 and bitcoin $1 million.