Hayes Predicts Bitcoin Growth to $500,000

Bitcoin could rise to $250,000-$500,000 amid an increase in the money supply in the U.S., said investor Arthur Hayes. He noted that technical mechanisms, which effectively act like money printing, are already active. Hayes pointed out that the growth of the money supply leads to the appreciation of Bitcoin, gold, and other assets. He characterized the current stage as a phase of "capital burning," where new money is used for loans and supporting investments. Hayes also mentioned that Bitcoin could reach an all-time high by the end of the year, but political constraints ahead of the U.S. midterm elections could impact the situation. He emphasized that one of the key issues for voters is the affordability of living, complicating the explanation of stimulus measures without acknowledging the increase in the money supply. Hayes added that a rise in Bitcoin to $500,000 before the elections is unlikely to help Trump politically. Regarding Ethereum, Hayes believes that risk-seeking investors might consider this cryptocurrency, as it has shown weaker performance and has yet to surpass its all-time high of $5,000 from 2021. This creates an attractive risk-reward ratio.