Arthur Hayes, co-founder of the BitMEX platform, predicts that cryptocurrency prices will reach unprecedented levels by the end of 2025. Hayes expects Bitcoin to reach $250,000, while Ethereum may reach $10,000.
*Reasons for forecasts:*
- *Expansion of global military spending*: Hayes believes that the expansion of global military spending will push the economy towards a credit cycle inflation similar to wartime periods.
- *Funding spending*: Military spending will not be funded through taxes, but through expansions in central bank budgets, leading to a liquidity flow towards rare and global assets like cryptocurrencies.
- *Impact of inflation*: Inflation is reignited, and real interest rates are lowered to avoid a debt service crisis, making cryptocurrencies an ideal refuge for capital.
*Political support for cryptocurrencies:*
- *Increasing political support*: Hayes sees the regulatory environment as constantly changing, with rising political support for cryptocurrencies and increasing openness from institutions and pension funds towards them.
- *Donald Trump's victory*: Hayes indicated that Donald Trump's victory for a second term helped accelerate cryptocurrency adoption through tax incentives and supportive regulations.
*Impact of forecasts on the market:*
- *Enhancing opportunities for the cryptocurrency market to thrive*: Strong political support and favorable regulations can enhance opportunities for the global cryptocurrency market to prosper.
- *Increased market confidence*: Positive forecasts can lead to increased market confidence and higher investment in cryptocurrencies.
