Arthur Hayes, co-founder of BitMEX, believes that Bitcoin could potentially reach a seven-figure valuation as U.S. debt continues to escalate. In a recent post on the social media platform X, he informed his 586,800 followers that potential alterations to the supplementary leverage ratio (SLR) rule by U.S. banks could flood the markets with liquidity, consequently fueling Bitcoin’s growth substantially.
Impact of SLR Rule Changes on Bitcoin
The supplementary leverage ratio rule dictates the liquidity levels that major banks must uphold, with the objective of mitigating excessive risk exposure. This rule was temporarily adjusted during the COVID-19 crisis to ease strain in the treasury market and bolster banks’ capacity to extend loans to households and enterprises.
Hayes expresses confidence in Bitcoin potentially surging to $1 million in this cycle, linking this anticipated growth to the escalation in money supply by global central banks. He asserted, “Every government across the globe will resort to money printing, leading to a significant surge in cash circulation,” a development that could notably enhance Bitcoin’s valuation.
“The public relations campaign spearheaded by U.S. banks to secure SLR exemptions has gained substantial momentum. This grants banks the ability to leverage U.S. Treasuries limitlessly and conveniently fund the substantial debts issued by the U.S. government. This serves as another indicator pointing towards Bitcoin reaching the $1 million mark.”
Moreover, Hayes highlighted ongoing transitions within the global financial system, with elites potentially opposing this transformation. Such resistance might trigger unprecedented money printing, resulting in substantial appreciation of digital assets like Bitcoin.
Effects of SLR Rule Modifications
Potential adjustments to the SLR rule could empower banks with heightened liquidity, thereby augmenting the money supply within the market. This could trigger an upsurge in demand for digital assets, consequently elevating Bitcoin’s valuation. Hayes’ insights offer a significant perspective considering the prevailing dynamics in the Bitcoin realm.
The rising prominence of Bitcoin and bullish forecasts from influential figures are amplifying interest in digital currencies. Nevertheless, market fluctuations and regulatory alterations stand as pivotal elements that could influence Bitcoin’s future valuation.
