Arthur Hayes, co-founder of BitMEX, has reignited the debate over a seven-figure Bitcoin price, presenting a new bullish case for the cryptocurrency.

His projection hinges on what he sees as an imminent shift in the Federal Reserve’s policy.

Powell’s Stance vs the Potential New Era

In a recent post on his X (formerly Twitter) account, Hayes pointed to comments made by Stephen Miran, a recent nominee for the Fed’s Board of Governors. The comments were made during his congressional hearing. According to reports, Miran mentioned that “moderate long-term interest rates” would be one of the Fed’s new duties.

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Hayes interprets this as a strong signal that the Fed is moving toward a Yield Curve Control (YCC) policy.

Current Fed Chair Jerome Powell has been at odds with the Trump administration regarding monetary policy. He has instead focused more on the Fed’s other mandates of maximum employment and stable prices, rather than long-term rates.

However, Powell’s term is set to expire in May of next year, and Hayes believes it would open the door for the Fed to implement aggressive long-term rate control if a pro-Trump figure is appointed as the next chair. He argues that if the Fed were to adopt YCC, real interest rates would likely turn negative.

This scenario would lead to a decline in the dollar’s value, prompting capital to flow into alternative assets. In this environment, Hayes projects that Bitcoin could soar to $1 million

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Author: Paul Kim