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The bitcoin price has bounced between $70,000 per bitcoin and $50,000 over the last few weeks as traders brace for a fresh U.S. crypto crackdown.
Now, as former U.S. president Donald Trump floats a radical plan to pay off the U.S.’s $35 trillion debt pile with bitcoin, one legendary trader has predicted Treasury secretary Janet Yellen’s liquidity bombshell could be blown out of the water by China.
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U.S. Treasury secretary Janet Yellen could inject up to $1 trillion into markets before the end of … [+]
Yellen “will inject at least $301 billion and a maximum of $1.05 trillion between now and year-end,” Hayes, a cofounder of bitcoin and crypto derivatives pioneer BitMex who went on to set up the Maelstrom investment fund, wrote in a blog post this week.
“That is going to create a glorious bull market in all types of risk assets, including crypto, all in time for the election.”
Hayes’ bitcoin price prediction is partly based on the unproven theory Yellen wants to help vice president and Democratic Party 2024 candidate Kamala Harris win the 2024 U.S. presidential election.
Next year, Hayes expects China to “finally unleash its long-awaited bazooka fiscal stimulus,” predicting the China-America “crypto bull market shall be glorious.”
China has fallen into economic malaise this year, feeding expectations the China central bank will step in with stimulus measures.
In July, crypto entrepreneur Justin Sun has said China is poised to flip on bitcoin and crypto while bitcoin and crypto investor Brock Pierce earlier predicted it’s only a matter of time before China reopens its digital doors to crypto.
“The next stop for bitcoin is $100,000,” Hayes wrote, predicting the bitcoin price will soar to $1 million per bitcoin as his “base case.” The bitcoin price rally will, according to Hayes, kick off rally in smaller cryptocurrencies.
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The bitcoin price has rocketed this year, with some predicting it could be poised to surge higher.
However, the bitcoin price and broader crypto market is struggling to regain its momentum from earlier in the year despite long-awaited Wall Street adoption and former president Donald Trump’s embrace of crypto.
“The technical picture for bitcoin remains bearish, with higher chances of further price decline,” Alex Kuptsikevich, the FxPro senior market analyst, wrote in emailed comments, pointing to selling pressure that could emerge from the U.S. offloading billions of dollars worth of seized bitcoin onto the market.
“A significant fundamental factor remains the sales from U.S. government wallets. Besides the natural effect of increased supply in large blocks, the psychological effect must be considered, causing buyers to wait for the end of the sell-off or speculate about the risks of regulatory tightening.”