AssetsMar 22, 2023

Bitcoin (BTC) will cost $1 million. Arthur Hayes repeats his prediction

The former CEO of the well-known cryptocurrency exchange BitMEX sees growth potential in the oldest virtual currency.

Although investors currently have to pay only about USD 27.2 thousand for one Bitcoin, a well-known expert expects that the BTC rate will increase several dozen times in the future. Arthur Hayes repeated his bold prediction in the context of the returning bull market in the cryptocurrency market. Additionally, he encouraged his Twitter followers to hurry up with buying BTC. Among the factors that may increase the value of the oldest virtual currency, he mentioned China's reduction in the reserve requirement rate.

China allows its key bank to cut its reserve requirement ratio

According to the co-founder and former director of the cryptocurrency derivatives exchange BitMEX - Arthur Hayes, the decision made by the Chinese central bank will be one of the main drivers of Bitcoin's growth towards $ 1 million per coin. After information appeared in the media that the People's Bank of China intends to reduce the reserve requirement rate, the American entrepreneur stated that this will be another and strong impulse encouraging people to buy Bitcoin.

Initially, the American entrepreneur predicted that the largest of the cryptocurrencies would cost $ 1 million at the stage of March 2021. Even before the American's forecasts, Bitcoin set a new ATH around $68.7 thousand. At that time, the American entrepreneur recognized this cryptocurrency as a good tool for transferring the value of digital currencies over time. He then called Bitcoin "hard money", putting it on the same shelf as gold.

Arthur Hayes' new Bitcoin rally narrative has to do with the announced reduction in the amount of cash in China that banks are required to hold as reserves. The Chinese central bank said on Friday that the decision is intended to help maintain liquidity and support the nascent economic recovery.

The People's Bank of China has announced that it will lower the reserve requirement ratio by 25 basis points for all banks except those that have introduced a 5% reserve ratio. This will take place starting from March 27 this year.

The current situation on the BTC chart

Currently, investors have to pay over $27.2 thousand for one Bitcoin. In the last 7 days, its value has increased by over 35%. In the daily range, the price of the oldest cryptocurrency jumped by more than 4%. Currently, investors in the digital currency sector are showing greed, according to the index measuring market sentiment from platform

Over the past 30 days, Bitcoin has been moving between $19.6K and $27.7K. At its current price of around $27,200, it is 60% off the historic ATH.