Bitcoin has been trading near the $20,000 range for a while now. The price has bottomed out at $17,596, and we have between $18,500-$21,500 for two weeks. Many investors are saying that we have already seen the bottom. On the other hand, a lot of skeptics believe that BTC will fall below $10,000. However, we haven’t heard anyone talk about a massive BTC rally amidst all this, which the Former BITMEX CEO Arthur Hayes believes is coming.
Is a massive BTC rally is coming?
Bitcoin has consolidated quite a lot in the past 9 months, and it could very well be the time to bounce back. Arthur Hayes, the former BITMEX CEO, says that a “doom loop’ has begun in macroeconomic terms while sharing the EUR/USD chart. Euro has been more valuable than the dollar for nearly 20 years, but recently it has become equal to the USD. Euros value has been falling since 2021, and there is a good chance the trend will continue.
Analysis suggests that the Russia-Ukraine war was one of the main reasons that this happened. Inflation is on the rise, increased rates are being hiked, and central banks are reducing their balance sheet. Euro has seen a decline because the ECB was unable to combat inflation and take appropriate measures.
So, Arthur’s theory is that the value of the dollar and Euro will continue to depreciate, and they will be replaced by Gold and Bitcoin. Countries will start to depend on them as they understand how centralized the financial system is. A good example of this is when a country as large as Russia was cut off from the SWISS Banking system.
Bitcoin’s rally
Arthur says that as the value of fiat currencies goes down, and the trust in a centralized system fades away, we could see a shift toward the use of a decentralized, trustless system. Bitcoin’s price could very well reach $1 million and even higher. The same goes for Gold which could also touch $10,000 due to this significant shift in the trust of financial entities. However, it is definitely going to take time, and it’s essential to be patient.
What are your thoughts as Arthur Hayes says that a massive BTC rally is coming? And do you think BTC could reach $1 million? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Bitcoin net outflows from exchanges are hitting all-time highs.
