Arthur Hayes, former CEO of crypto exchange Bitmex, has predicted a remarkable surge in the price of bitcoin, envisioning it reaching $1 million amidst anticipated banking bailout measures and significant money printing by the Federal Reserve. Hayes expects the troubled New York Community Bancorp (NYCB) to become bankrupt after Moody’s cut its credit rating to junk status.
Hayes Expects to See Bitcoin Hitting $1 Million
The ex-CEO of crypto exchange Bitmex, Arthur Hayes, expressed his anticipation that the value of bitcoin will surge to $1 million in a couple of posts on social media platform X this week.
On Monday, Hayes shared a price chart for troubled New York Community Bancorp (NYSE: NYCB) and wrote: “Resume the dump!” Citing Federal Reserve Chair Jerome Powell’s recent statement indicating that the U.S. economy and banks are “strong to very strong,” Hayes noted that New York Community Bancorp “says otherwise.” He added:
Who is right the market or the central banker? Time and compounding interest are two things even Neo Keynesians can’t wish away. The bailout is coming, $BTC = $1mm.
Price chart for NYCB shared by Arthur Hayes.
At the end of January, Hayes shared on X that he expects Powell and Treasury Secretary Janet Yellen to start “printing money very soon,” citing a “surprise” loss at New York Community Bancorp.
Concerns Mount Over NYCB and US Banking Sector
Fears gripped the U.S. banking sector last week as NYCB reported a jaw-dropping $252 million quarterly loss, reversing a $172 million profit year-over-year. The bank’s loan losses quintupled to $552 million, fueled by commercial real estate concerns. NYCB’s stock tumbled 40% in a single day at January’s close, following the earnings release, dragging the U.S. Regional Bank index down with it.
In a follow-up post on Tuesday, Hayes shared a Bloomberg article about Moody’s cutting NYCB’s credit grade to Junk status. Yellen said in a Senate hearing Thursday that she hopes that commercial real estate weaknesses will not become “a systemic risk to the banking system.” However, she noted that “there may be smaller banks that are stressed by these developments.” Fed Chair Jerome Powell also said this week that some banks will “have to be closed or merged out of existence.”
Commenting on NYCB, the former Bitmex chief opined on X:
Oh baby … From junk to bankrupt, that’s the future. And then more money printer go brrrr. $BTC = $1mm.
