Arthur Hayes, co-founder of BitMEX, has urged Bitcoin investors to stay patient as the digital asset market navigates through the current economic cycle.
In a recent interview, Hayes projected that Bitcoin could climb toward $700,000 in the coming years, driven by the effects of monetary easing, political stimulus, and global demand for hard assets.
He argued that short-term market disappointment often blinds investors to the broader trajectory. Measured against gold, most assets remain below their peaks, but Bitcoin has outperformed nearly everything on a relative basis.
Hayes noted that long-term holders have already secured significant gains compared to fiat currencies, underscoring Bitcoin’s position as the “faster horse” in the ongoing currency debasement cycle.
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In addition to Bitcoin, opportunities existed in the space for altcoins, according to Hayes, who insisted upon a bright line between sustainable models in projects and those geared toward hype.
He specified how investors have punished the tokens associated with projects either for not generating any kind of revenue or for disregarding tokenholder rewards.
The next wave, in his opinion, will favor protocols earning cash flows, paying stakers rewards, or in-token buybacks. Such names circulating in the markets are projects such as EtherFi, HyperLiquid, and Athena, just a few of the decentralized projects sporting a clean record and real mechanisms for generating revenues.
In the opinion of Hayes, not many such projects can achieve 100x returns in the medium term as liquidity continues to move in from stablecoins into DeFi.
Stablecoins have now gone beyond being simply a trade vehicle in his view. They are a good policy tool by causing structural demand for U.S. Treasury bills and serving as a world on-ramp to the world of digital finance.
With the trillions potentially going into the instruments, the spillover does cause growth in yield-bearing crypto protocols quicker and potentially even faster than Bitcoin, at least in percentage terms.
In the near term, Hayes foresees the bull market persisting until 2026 and a potential U.S. economic push under a Trump second term. He contended that the U.S. presidents in the past put a strain on the Federal Reserve in an effort to make policy support their agenda, pointing to the historical precedent set by Johnson through Nixon.
With the prospects of cuts in rates and new injections of liquidity, risk assets like Bitcoin are expected by Hayes to continue gaining.
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