BitMEX CEO Says Bitcoin Might Reach $1 Million

Arthur Hayes, a former CEO of BitMEX, has reaffirmed his forecast that Bitcoin will cost $1 million, citing China's recent reduction in the reserve requirement (RRR) as a factor that will increase the cryptocurrency's value.

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Hayes included a screenshot of a Trade Algo item outlining China's plan to cut the RRR for practically all banks by 0.25 percentage points in a tweet. This action was taken to maintain rapid loan growth and ensure banking system liquidity.

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According to U.Today, Hayes earlier predicted that Bitcoin will reach $1 million by 2030 and credited this milestone to the "HODL culture," which refers to individuals who steadfastly refuse to sell their holdings in expectation of a large price increase.

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The bullish forecast was made back then when the euro and the dollar got close to parity for the first time in 20 years.

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The reduction in the RRR by China is viewed as a measure to encourage lending and improve the country's economic recovery from influenza restrictions and a downturn in the real estate market. According to economists, the reduction will support the quick pace of lending observed in January and February and retain liquidity in the banking sector.

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The current banking crisis is causing uncertainty and swings in the world's financial markets, while also unexpectedly reviving the cryptocurrency market.

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Following Silicon Valley Bank's bankruptcy filing earlier today, the price of Bitcoin soared past $26,000. Other cryptocurrencies, including Ether and Dogecoin, also experienced significant price increases as investors fretted about the lack of banking access for cryptocurrency companies in the United States.

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Hayes reiterated his former assertion that a new crypto bull market is already underway with his most recent forecast.