Former BitMEX CEO and notorious Bitcoin evangelist Arthur Hayes claimed on his Twitter account that Bitcoin is gearing up for a massive rally. This is after the euro hit par with the dollar for the first time in 20 years.
Hayes himself is not without controversy. However, he has a substantial following across several social media platforms, including a Twitter following with 273,200 followers.
He said, “The #DoomLoop has begun. 1 USD = 1 EUR. Prepare yourselves for YCC and $BTC = $1 million. But please be patient, these things take time.”
Doom Loop Incoming
In April, Hayes published an article on his personal blog in which he analyzes the current chaotic macroeconomic scenario. In his view, the weakening of the dollar and the euro will make countries outside the western axis look for safer assets such as commodities, in this case, gold and Bitcoin.
The “Doom Loop” theory, according to Hayes, was triggered after the European Central Bank (ECB) failed to implement effective measures to stop the conflict between Russia and Ukraine and Russia’s cut-off from the international financial system.
“As gold succeeds, so will Bitcoin. Why should any central bank ‘save’ in any Western fiat currency when their savings can be arbitrarily and unilaterally expropriated by the operators of digital fiat money networks?” asks Hayes.
The fall in value of the euro against the dollar is just the first stage of the change scenario highlighted by Hayes. The main catalyst will be the attempt by central banks to control the yield curve (YCC), limiting yields so that governments can pay off their debts.
Bitcoin at $1 million
Hayes’ theory is based on the dissolution of trust in the institutions that issue fiat currencies today. Vast monetary printing is always the solution found to prevent countries from becoming insolvent.
A change of mindset on the part of financial entities, which he believes will happen sometime in the next decade, will trigger a rally that could push the value of gold to $10,000 and Bitcoin to $1 million.
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