Arthur Hayes Makes Bullish Bitcoin Rally Claims
It is not the best time for the flagship digital currency as the broader crypto market bloodbath has affected its price action. Bitcoin is currently in a bearish trend as the price continues to hover between $20,000 and $21,000 at the time of writing.
Bitcoin has been rejected at some resistance levels and is on the verge of retesting its yearly low, which is less than $20,000.
Amid the downtrend, the former CEO of BitMex, Arthur Hayes, is confident that the market should begin to prepare for a huge Bitcoin bull run.
Arthur Hayes Bullish Over Upward Price Trend
According to Arthur Hayes, former CEO of BitMex, the macroeconomic landscape will soon experience a “Doom Loop.” Hayes claimed his Twitter handle, citing the Euro’s performance against the USD.
For the first time in 20 years, the Euro is on par with the dollar, and Hayes has envisioned that a similar scenario will happen in the crypto space. Hayes maintained that the Euro had been downward since last year.
Moreover, the drop in the value of the Euro was triggered by the conflict in eastern Europe between Russia and Ukraine. The impact of the war is so extreme that central banks in the EU bloc are forced to review their balance sheets or hike their interest rates.
As a result, the European Central Bank (ECB) could not address the ugly situation that has shot the prices of goods and services up. Thus, the Euro’s decline is an after-effect of the crisis between Russia and Ukraine.
Hayes’ “Doom Loop” hypothesis is a scenario where both fiat currencies, the EUR and the USD, depreciate in place of Bitcoin and gold.
Will Bitcoin Become the World’s Reserve Currency?
It is worth noting that the ex-BitMex CEO’s theory began taking shape some weeks ago after the EU yanked Russia’s access to international payments. Hayes noted that in the next few years, people would focus on purchasing Bitcoin and gold instead of fiat currencies.
Therefore, Hayes believes that a price surge for these commodities will increase their value to $10,000 for Bitcoin and $1 million for gold. However, the “Doom Loop” hypothesis is nothing but a mental calculation of what might happen if the hypothesis becomes a reality. The possibility of this happening is realistic depending on the outcome of what Hayes has envisioned.
Meanwhile, any decline in the glue that holds fiat currency will likely result in Hayes’ “Doom Loop” scenario in the financial sector. That one thing is trust. Without trust, all institutions and governments worldwide will interact in a trustless manner.
Thus, Hayes’ prediction of a massive price surge for Bitcoin is possible given the right conditions to manifest. But the ex-CEO of BitMex failed to stress that this scenario will take time even if trust in fiat currencies is lost today.
Since last year, Bitcoin has been trading in the red after attaining its all-time high value of $69,000. The largest cryptocurrency has failed to recover its previous value.
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