The global digital asset market recorded a major recovery as Bitcoin (BTC) went on to regain the crucial $43,000 price level. BTC recent surge depicts a resilience among investors towards the crypto market. The cumulative market cap jumped by over 2% over the last day as the big banks’ share price witnessed a sharp decline. However, Arthur Hayes predicts that the situation only going to help Bitcoin.
Arthur Hayes predicts Bitcoin to hit $1 million
The co-founder of crypto exchange BitMEX, Arthur Hayes raised concern about financial contagion and the potential impact on the economy. He stated that the Contagion is spreading and suggested that the Federal Reserve might not resort to interest rate cuts but could modify eligible collateral requirements.
Hayes added that this will effectively be engaging in “back end money printing.” He noted that Bitcoin easily sees through such measures and predicted that a surge in BTC’s value could reach $1 million.
Bitcoin price is up by more than 7% in the last 7 days while it gained 3% over the last 24 hours. BTC is trading at an average price of $43,012, at the press time. However, its 24 hour trading volume is down by 23% to stand at $19.8 billion.
In another post, Hayes showed anticipation for potential bank failures. He is expecting fresh monetary policies from Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen. He repeated his belief that Bitcoin’s value could reach $1 million.
Fed Reserve and rate cuts
Goldman Sachs adjusted its forecast for the timing of US Fed Reserve interest rate cuts by pushing the expected start from March to May. The Wall Street brokerage maintained its prediction of five 25 basis points rate cuts in the year. However, it comes with four consecutive cuts expected from May through September and a final cut in December. The Fed, in its recent policy meeting, kept rates steady, and Chair Powell did not commit to imminent rate cuts.
The dollar saw broad declines amid positive risk sentiment following strong earnings from major tech companies. The closely watched nonfarm payrolls report awaited by traders was seen as a gauge for potential Fed Reserve rate moves. Powell’s comments during the latest policy meeting had pushed back against expectations of immediate rate cuts.
The risk-on sentiment benefited currencies like the Australian dollar, which saw a modest increase, and the New Zealand dollar, on track for its best weekly performance in over a month. The dollar index faced its first weekly decline for the year, standing at 103.02. However, the global market cap stands at around $1.65 trillion.
