BitMEX Co-Founder Believes Bank Crisis Has Been Set For Powder Keg Explosion

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Arthur Hayes, the former CEO of Bitmex, is anticipating seeing some significant volatility for Bitcoin in the latter part of the year, which would be caused by a powder keg explosion from the United States banking crisis, and the ever-increasing national debt. Hayes, who is currently operating a crypto-focused investment fund called Maelstrom, spoke on the What Bitcoin Did podcast on 26th May, where he brought about a number of predictions about the current outlook of the national economy and its impact on the price of Bitcoin. Noticeably, Hayes also stated that he expected the original cryptocurrency to reach the price range of $70,000 by 2024.

BitMEX CEO Believes Bitcoin Price Will Not Reach $70000 In 2024

The former CEO of Bitmex then pointed towards the practice of quantitative easing, which entails increasing the money supply, and a broader social disquiet as the two main drivers of such an event, which could definitely cause a major decline in the price of cryptocurrency and equities. He further added that with the banking crisis, one could see the federal government issuing vast trillions of dollars of debt because they need to somehow fund themselves, which would create a powder keg situation that would explode in Q3 or Q4 this year. He reiterated that the cryptocurrency would not be touching upon any new all-time high anytime this year. 

Analysts apart from the former Bitmex CEO have actually made several positive comments on the price of the cryptocurrency in the short term. Speaking to Bloomberg, Tommy Honan, the head of market analysis at Swyftx, a crypto exchange, stated that it was quite possible that the relief of a debt deal will be bringing in traders back to the table, which would then trigger the next big leg-up in the price of Bitcoin.