Arthur Hayes Says, “The Fed Will Start Printing Money, Bitcoin Will Soar” – But Explains Why He Won’t Buy BTC Right Away

Appearing on Natalie Brunell’s “Coin Stories” program, BitMEX co-founder and Maelstrom Investment Manager Arthur Hayes made striking statements about the global economy and the future of Bitcoin.

Hayes predicts that the Fed will be forced to print money again to finance war spending, triggering a massive surge in the price of Bitcoin.

At the beginning of the interview, Hayes touched upon his investment strategy, stating that if he currently had cash to invest, he wouldn’t buy Bitcoin immediately. Arguing that ongoing tensions in the Middle East would push the Fed to print money to support the US “war machine,” the renowned investor said, “I will buy Bitcoin when central banks start printing money.”

Hayes, drawing attention to the disruption that artificial intelligence (AI) will create in the labor market, said that this could create a “Minsky moment” for the banking system. He argued that 10% to 20% of white-collar jobs being taken over by AI would shake the leverage in the banking system and could lead to a major credit collapse. He stated that this situation would necessitate intervention by the Fed.

Hayes, evaluating Bitcoin’s performance over the past 6-9 months, described the asset as a “liquidity alarm.” He attributed Bitcoin’s current stagnation to insufficient dollar liquidity in the market, while blaming the rise in gold on central banks’ erosion of confidence in dollar assets and their efforts to protect their reserves.

Hayes stated that Bitcoin could reach $500,000 within the next 5 years, but this would entirely depend on the expansion (liquidity) of fiat currencies.

Warning against short-term dreams of getting rich quick, Hayes said, “The market’s job isn’t to make you money, it’s to take your money.”

*This is not investment advice.