Former BitMEX CEO Arthur Hayes doubles down on his prediction Bitcoin price will reach $1 million

Arthur Hayes, a former CEO of BitMEX, has reaffirmed his forecast that Bitcoin price will cost $1 million, citing China’s recent reduction in the reserve requirement ratio (RRR) as a factor that will increase the cryptocurrency’s value.

In a tweet, Hayes included a screenshot of a Bloomberg item outlining China’s plan to cut the RRR for practically all banks by 0.25 percentage points. This action was taken to maintain rapid loan growth and ensure banking system liquidity.

According to a prior prediction by Hayes, Bitcoin will hit $1 million by 2030 due to the “HODL culture,” in which consumers steadfastly refuse to sell their holdings in expectation of a big price increase.

The bullish forecast was made when the euro and the dollar got close to parity for the first time in 20 years.

China’s reduction in the RRR is viewed as a measure to encourage lending and strengthen the economy’s recovery from pandemic restrictions and a downturn in the real estate market. According to economists, the reduction will support the quick pace of lending observed in January and February and retain liquidity in the banking sector.

The current banking crisis is causing uncertainty and swings in the world’s financial markets while also unexpectedly reviving cryptocurrency.

Following Silicon Valley Bank’s bankruptcy filing earlier today, the price of Bitcoin soared past $26,000. Other cryptocurrencies, including Ether and Dogecoin, also experienced significant price increases as investors fretted about the lack of banking access for cryptocurrency companies in the United States.

With his most recent forecast, Hayes reiterated his former assertion that a new crypto bull market is already underway.

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