Bitcoin to Hit $1 Million by 2028 Says Arthur Hayes
The cryptocurrency market is expected to experience a significant surge with the potential return of foreign capital to the United States. A prominent figure in the crypto industry forecasts that Bitcoin will reach $1 million between now and 2028.
The catalyst for this potential 10-fold increase in Bitcoin’s price is attributed to the growing divergence between the Chinese and US economies. As a result, US capital is likely to be retained within the country rather than being invested abroad.
With a substantial $33 trillion in foreign portfolio investments, even a 10% allocation towards Bitcoin could lead to unprecedented growth. Currently, exchanges hold around $300 billion worth of Bitcoin, and a 10-fold increase in capital inflows would likely result in a more than 10-fold rise in price.
The devaluation of US commercial paper is also expected to highlight investment opportunities in Bitcoin. The value of US treasuries has already declined significantly against gold and Bitcoin since 2021.
The predicted timeline for Bitcoin’s rally is tied to the end of the current US administration’s tenure and the start of a new election cycle in 2028. However, investors are advised to remain cautious, as the path to this growth may be volatile.
In anticipation of potential fluctuations, reducing risk and increasing cash allocation may be prudent. The current price of Bitcoin has retracted slightly to $101,800, with the overall crypto market experiencing a 2.8% loss in capitalization.
