Arthur Hayes: "Bitcoin will indeed jump to $1m. But there's a nuance"

• Ex-director of BitMEX agrees with the forecast
• But gives a different timeline

Renowned crypto-philosopher Arthur Hayes agrees with the prediction that bitcoin could reach $1m. But not in the next 90 days, as the former Coinbase director thinks. The major cryptocurrency will need 2-3 years for such growth.

Here's what Hayes said in an interview with the Bankless Podcast:

"Do I think Bitcoin will reach $1 million in 90 days? No, I don't think so. I think bitcoin will reach $1 million in this cycle."

The legendary trader goes on to explain his reasoning. Bitcoin's rise will result from the excess liquidity created in the financial market by quantitative easing (QE) and the BTFP bank bailout programme.

Recall that BTFP is an emergency lending initiative offered by the Fed to banks in exchange for US Treasury bonds, mortgage-backed securities and other eligible collateral assets.

Hayes believes that external assets (gold, real estate and bitcoin) are preferable to domestic money (fiat), which is a liability on the balance sheet. He said that the banking system is not affected by foreign money and that it could be an interesting investment option in turbulent times.

Right now, the Fed is funding the entire banking system unchecked. According to Hayes, this will lead to an increase in the price of bitcoin and external monetary assets.

If you want to get a closer look at the analysis from Hayes, we recommend reading his essay. In "Kaiseki" he has just described the market environment and future prospects for BTC.