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Dark predictions by Arthur Hayes: New bank collapses and postponed Bitcoin ATH

Tue 06 Jun 2023 ▪ 4 min of reading ▪ by La Rédaction C.
Getting informed Invest

The man who predicted the fall of the United States and the European Union in 2022 has now made statements about the fate of the American banking system and Bitcoin. In a new essay, Arthur Hayes, co-founder and former CEO of BitMex, has made negative prophecies concerning the global finance.

Illustrations of a cliff and bank with bitcoin logo

Arthur Hayes denounces the exodus of investors

The fear of a US default has led some analysts to make all sorts of predictions. These predictions can involve the dollar, the American banking system, global finance, and cryptocurrencies.

Arthur Hayes, who has just predicted explosive times for the financial markets, is part of it. And he believes in a Bitcoin price of 1 million dollars.

According to The Daily Hodl, the head of Maelstrom Capital fears the worst for the future of American banks. In a recent essay, he pointed out the “exodus” of companies seeking to surpass the low-interest rates.

Over $1 trillion has been removed from the US banking system since last year. The big question going forward is, will this exodus continue? Will businesses and individuals continue to move money from 0% yielding bank accounts into money market funds yielding 5% or 6%?

Logic tells us the answer is an obvious and resounding ‘absolutely.’ Why would they not, if all it takes is a few minutes on their smartphones to 10x their interest income? The US private sector will continue to pull money from the US banking system until the banks offer competitive rates that match at least the Fed funds rate,” he explained.

And the statistics from the Fed speak volumes about these massive fiat withdrawals. For example, between May 10th and 17th, approximately 30 billion dollars were extracted from American bank accounts. It is said that there was an increase of over 4 billion dollars compared to the week prior to this period.

It is also worth noting that the American banking system is now only worth 17.15 trillion dollars in deposits, compared to 18.03 trillion dollars last year.

High volatility for Bitcoin

Arthur Hayes does not believe that Bitcoin will fall below the $20,000 mark, despite its high volatility.

I expect that Bitcoin will hold firm here. I do not believe we will retest $20,000 or come anywhere close.

He also believes that the $70,000 per BTC will not be reached this year.

Regarding the banking apocalypse predicted by Jamie Dimon, CEO of JPMorgan, it is correlated with the excessive regulations imposed by the Fed.

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La Rédaction C. avatar
La Rédaction C.

The Cointribune editorial team unites its voices to address topics related to cryptocurrencies, investment, the metaverse, and NFTs, while striving to answer your questions as best as possible.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.