BitMEX co-founder Arthur Hayes forecasts Bitcoin reaching $1 million by 2028, citing Japan’s new economic measures as a catalyst for future money printing.
Japan’s new Prime Minister, Sanae Takaichi, recently announced a significant package of economic stimulus. The measures are aimed at alleviating the harsh burden of inflation on Japanese households and businesses. This news was quickly picked up by crypto watchers around the world. BitMEX co-founder Arthur Hayes predicted that this move may bring significant capital to Bitcoin and other hard assets.
Japan’s Inflation Plan Seen as Boost for Bitcoin
The new stimulus consists of direct subsidies of electricity and gas tariffs at present. Moreover, the package includes regional grants to effectively ease the current price pressures. The government is also trying to promote small to medium businesses to increase employee wages. Hence, the overall objective is to stabilize the domestic economy in a short time and in an efficient manner.
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Arthur Hayes took the development as a clear foreshadowing of even more fiat money printing by Japan’s central bank. Moreover, Hayes also predicts that this monetary policy might cause a rapid acceleration in Bitcoin’s growth to $1 million. Thus, his forecast is a forecast of currency debasement that follows.
Hayes expects Bitcoin to hit this $1 million mark by 2028. Hence, he considers the economic stimulus measures to be an important starting point. His theory is that an increase in the amount of fiat money will automatically push capital away from depreciating currencies. As such, this fleeing capital will push hard for a shelter in decentralized fixed supply assets such as Bitcoin.
It is backed up by historical examples he cites. For instance, Hayes takes the example of the enormous global money printing in the COVID-19 era. And that act directly led to a dramatic increase in the price and valuation of Bitcoin.
Global Monetary Policies Fueling Long-Term Bitcoin Confidence
Furthermore, the prediction by Hayes is not about Japan’s actions exclusively. He had also previously cited the possible money printing by the U.S. Federal Reserve as a major contributing factor. Therefore, these recurrent international pressures will tend to combine to destroy all major fiat currencies. This weakening is like a strong hedge that sends capital to Bitcoin.
Due to the political change, the Japanese Yen faced immediate market volatility. The Yen reached its one-week low on Tuesday, according to Reuters. This happened immediately after Sanae Takaichi successfully became the first female prime minister of the country. As a result, investors interpreted this move as a mixed message about the forthcoming rate decisions as a whole.
In summary, the economic package by the new Japanese government has two meanings. It offers indispensable relief to households and is a strong affirmation for struggling businesses. However, it’s a significant monetary policy course, according to well-known crypto figures such as Arthur Hayes. This will be a path of further globalization of currency dilution. Ultimately, this long-term debasement is seen as the single most powerful bullish story for Bitcoin’s drive towards $1 million.
