Many analysts, famous figures and traders have tried to predict the future price of Bitcoin. Arthur Hayes, CEO of BitMEX, is known for his predictions about BTC. Last year, Hayes stated that Bitcoin could sink as low as $3,000 in 2020 and rise up to $20,000.
Hayes has been astonishingly accurate with his prediction as Bitcoin touched $3,700 on some exchanges and around $3,500 on BitMEX. The first part of his prediction seems to have been completed and now we will be waiting for Bitcoin to hit $20,000.
According to the latest BitMEX blog, Hayes still believes that Bitcoin will hit $20,000 by the end of 2020 but the recent bounce might not be final just yet.
What Is The Trajectory for Bitcoin?
In the blog, Hayes states that although he believes Bitcoin is headed for $20,000, the road will be bumpy.
“Bitcoin will be owned unlevered. Could the price retest $3,000, absolutely. As the SPX rolls over and tests 2,000 expect all asset classes to puke again. As violent as the Q1 collapse in asset values was, we have almost 100 years of imbalances to unwind the ancien regime. My end of 2020 price target remains $20,000.“
Arthur Hayes also talked about a possible global margin call. This occurs when the value of the investor’s margin accounts falls below the broker’s required amount which forces them to deposit more money or sell.
In the event of a global margin call, Hayes states that “all liquid assets will be sold to finance holdings of illiquid ones.” and that we are in the midst of a global margin call on all risky assets.
It seems that Hayes is pointing towards a global shift towards cryptocurrencies and possibly gold, although gold is already a popular safe-haven. “All I know is the setup for bitcoin, the hardest form of digital money, could not be better. All manners of trust have evaporated.“
Meanwhile, the Federal Reserve has planned a trillion-dollar injection to save the US economy. This is not necessarily a bad solution in the short-term and the Federal Reserve was able to avoid inflation rise thanks to Quantitative Easing, however, this cannot be a long-term solution and that’s why Arthur Hayes thinks Bitcoin is the best solution.
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