Arthur Hayes "Bitcoin will reach $1 million, Great Depression coming in 2030" warns

▲ Bitcoin (BTC), crash market / ChatGPT generated image

A multi-trillion dollar liquidity injection, triggered by the easing of US bank regulations, is poised to drive Bitcoin (BTC)'s record-breaking surge.

In an interview with the crypto-focused YouTube channel Altcoin Daily on April 27 (local time), Arthur Hayes explained the ripple effect that the reform of the US Enhanced Supplementary Leverage Ratio (ESLR) would have on the market. Hayes analyzed that the regulatory reform, which came into effect on April 1, would alleviate the capital retention burden on large banks and generate enormous credit in the market. He emphasized, "This measure is a massive liquidity injection designed to allow banks to take on more risk and absorb government bonds."

This regulatory easing is interpreted as an intention to support a war economy system for defense and resource acquisition. Instead of the government directly injecting funds, private banks are encouraged to increase lending to the real economy, which is expected to inject trillions of dollars of credit into the market. Such changes will fuel the depreciation of currency value while simultaneously acting as a powerful driving force to push up the price of scarce assets like Bitcoin. It is diagnosed that the expansion of funds occurring during the improvement of bank profitability will change the overall nature of the market.

A negative real interest rate environment, where economic growth rates exceed government bond yields, provides optimal ground for Bitcoin's rise. Hayes predicted that Bitcoin has already bottomed out near $60,000 and will continue a gradual upward trend in the future. He stated, "Those without assets will suffer from inflation, but investors holding Bitcoin will benefit from the liquidity party." Hayes reaffirmed his previous conviction that the price of Bitcoin would reach $1 million by 2030.

Altcoin investments should focus on actual user numbers and revenue models rather than mere technological prowess. Hayes positively evaluated projects like Hyperliquid (HYPE) that increase token value through platform revenue. Conversely, he analyzed that Ethereum (ETH) might record lower returns than Bitcoin due to inefficient capital inflow compared to network activity. It is a time for discerning investors to choose assets with proven cash flow rather than indiscriminate meme coin investments.

Hayes concluded the interview with a warning that a severe economic recession, akin to the Great Depression, lurks at the end of endless credit expansion. Between 2030 and 2035, the trust in currency issuance could reach a breaking point, severely impacting all asset markets. Investors should leverage the current phase of liquidity expansion while also keeping a close eye on long-term risk factors such as political rhetoric and policy changes. The point at which the limits of credit supply become clear is expected to be a painful turning point for market participants.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*