Analyst Hayes predicts Bitcoin price could surge to $3.4M by 2028 if Fed adopts yield curve control, boosting credit and digital asset adoption.
Analyst Arthur Hayes predicts that Bitcoin could surge if the Federal Reserve adopts yield curve control (YCC). By this plan, the new credit could reach more than 15 trillion through mass printing of money by 2028. This could increase the liquidity to push Bitcoin to greater heights of up to $3.4 million as opposed to the current Bitcoin price of around $115000. The forecast highlights the possibility of Bitcoin as one of the most successful investments during a monetary boom period.
Yield Curve Control Aims to Strengthen Regional Banks
The yield curve control enables the Fed to impose limits on the short-term and long-term government bond yields. Through rate control, banks will be able to lend out in a safer and more profitable way, particularly to the small and medium-sized enterprises (SMEs). It has been observed in the past that a steep yield curve in the period 1942-1951 assisted the regional banks in increasing credit to the industry.
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The scheme would transfer the work of creating credit to the regional banks instead of big financial institutions. These small businesses would be funded by these banks and they are the ones that provide nearly half of the U.S. workforce. The steeper curve will minimise the risk to the lenders and make them fund manufacturing and other real industries. More bank lending can boost production within the country and enhance the competitiveness of U.S. exports.
Yield curve control would also make it cheaper to borrow by the government. The Treasury would be able to issue debt at discounted long-term yields, thereby reducing the cost of interest. This approach can also stop the U.S. dollar against other currencies and gold.
YCC is dependent on the political control of the Fed. Interest rates that are set by the Federal Reserve Board of Governors (FBOG) are critical in the short run, whereas those of the Federal Reserve Open Market Committee (FOMC) control the supply of money. Having a majority in both boards would help the policy makers to impose low rates and increase lending using the regional banks. Strategic appointments have the potential to gain voting control by mid-2026.
Bitcoin’s Scarcity Poised to Attract More Investors Under YCC
With its implementation, YCC would lead to a colossal bank credit growth. The total credit creation may reach up to 15 trillion by the year 2028, using the historical trends during the COVID-19 period. This growth can put pressure on the limited resources, such as bitcoin. According to analysts, every dollar of new credit might drive cryptocurrency prices up, which is in favor of a possible long-term rally.
The possibility of an increase in Bitcoin under YCC underlines its presence as a hedge during monetary growth. As the purchasing power of fiat currencies decreases because of printing more currency, investors might be willing to invest in digital assets. The connection of the conventional financial policy to the decentralized assets might result in faster adoption and inflows into cryptocurrencies.
Overall, YCC may remodel the economy and financial markets in the U.S. The strategy can increase domestic output by incentivizing regional banks, reducing the cost of debt, and increasing credit, which would in turn raise asset prices. Bitcoin is a scarce commodity, and this could help make it a profitable asset both among institutional and retail investors.
