Hayes: Money Printing in the US Will Push Bitcoin to $500,000

• Arthur Hayes believes the technical mechanisms for expanding the money supply are already in motion.
• He forecasts this could push bitcoin to $250,000-$500,000.
• The expert also called Ethereum the most attractive asset on a risk-return basis.

Bitcoin could rise to $250,000-$500,000 amid an expanding US money supply, prominent investor and analyst Arthur Hayes said. According to him, the relevant technical mechanisms are already active.

Hayes noted that the money supply is expanding through technical mechanisms that, in his view, effectively function like money printing.

Hayes said that against this backdrop, bitcoin, gold, and other similar assets are rising. He described the current stage as a “capital misallocation” phase, when new money is funneled into loans to roll them over and support investments already made.

Will Bitcoin Set a New All-Time High?

Hayes said bitcoin could break its all-time high by the end of the year. At the same time, he pointed to political constraints ahead of the US midterm elections.

According to him, one of the main issues for American voters is the cost of living. Therefore, Donald Trump’s administration will have to explain stimulus measures without directly acknowledging an expansion of the money supply.

He added that bitcoin rising to $500,000 right before the elections is unlikely to help Trump politically.

Hayes Called Ethereum the Top Asset After Bitcoin

Separately, Hayes spoke about his expectations for Ethereum. According to him, investors who want to take on maximum risk beyond bitcoin, but do not want to face a sharp drop due to a technical protocol error, may consider Ethereum.

“If you want to take on maximum risk outside of bitcoin and not worry that your junk will crash 75% overnight because of some bug in the protocol — that’s Ethereum,” he said.

Hayes noted that Ethereum underperformed other major crypto assets during the previous cycle and still has not surpassed its 2021 all-time high of $5,000.

In his view, this creates an attractive risk-return profile. Hayes added that Ethereum is his team’s largest position ahead of the expected liquidity rally.

As a reminder, Hayes previously published an essay titled Atención. The Incrypted team prepared a recap of the text:

Сообщение Hayes: Money Printing in the US Will Push Bitcoin to $500,000 появились сначала на INCRYPTED.