In a recent analysis published by "Arthur Hayes" on the Substack platform on July 23, the BitMEX founder noted that geopolitical developments and global economic trends could pave the way for a strong rise in Ethereum's price, predicting that the currency will reach $10,000 by 2025, supported by increasing institutional interest and macroeconomic indicators.
Hayes believes that former US President Donald Trump's shift towards wartime-like economic policies could lead to a massive credit expansion, which may result in the creation of "asset bubbles" – the digital sector, especially cryptocurrencies, will have a significant share of it. In this context, Hayes believes that Ethereum will be one of the main beneficiaries, given its advanced infrastructure and the increasing reliance of Western institutions on it.
Why does Hayes bet on Ethereum?
According to Hayes, Ethereum has been in the shadows for a while, especially after Solana's strong comeback following the FTX crisis, even though Bitcoin is still considered the primary reserve asset in the crypto market. However, he points out that the confidence of major financial investors, such as "Tom Lee", is increasing towards Ethereum, and he emphasizes that the return of momentum to the decentralized finance (DeFi) sector represents an early signal of an approaching new upward wave.
Hayes's emerging investment firm, Maelstrom, also supports the Ethereum system and the ERC-20 environment, reflecting his personal conviction that "the upcoming rise of Ethereum is near", especially after it increased by 176.3% from the $3,619 level. His optimism also extends to Bitcoin, where he expects it to reach $250,000 by the end of this year.
US policy and its impact on the crypto market
Hayes links the future of digital currencies to economic trends in the United States, pointing to a potential shift towards "state capitalism" or "economic fascism" aimed at supporting manufacturing in a global context witnessing rising tensions. He states that this shift will allow banks to finance companies without the need for government guarantees, thereby enhancing credit expansion.
Hayes believes that this expansion will inevitably lead to inflation, especially if it is not accompanied by real growth in production or employment. For this reason, he advises that governments should direct this expansion towards non-essential assets such as digital currencies, rather than negatively impacting food or housing prices.
The expected role of stablecoins
In conclusion to his analysis, Hayes points out that stablecoins may play a pivotal role in this new system, just as Ethereum does, as they are used for storing and reinvesting value – especially in US Treasury bonds. As the market capitalization of digital currencies expands, the amount of stablecoin storage increases, which enhances market stability and growth.
