Arthur Hayes co-founder of BitMEX said that the euro’s decline indicated that Bitcoin may reach $1 million by the end of the decade.
Today, the official currency of the eurozone fell to $1.0001, putting it within an inch of parity with the United States dollar for the first time since 2002. As of press time, it has registered a small rebound, trading little over half a penny above the dollar. Fears of a Russian gas cutoff and an impending recession have contributed to a 20% loss in the buying power of the euro over the last several months, with the eastern European nation’s conflict with Ukraine compounding the decline.
In the meanwhile, the U.S. dollar has risen as a result of the Federal Reserve’s decision to raise interest rates to combat surging inflation rates. The European Central Bank has been slower to move; later this month, it will decide between a first 25 basis point or 50 basis point increase.
Since Russia’s invasion of Ukraine, experts throughout the globe have warned that a global recession is possible. President Putin’s repeated threats to shut off European gas supply have heightened concerns that energy costs would continue to climb if Europe loses its principal gas supplier.
In crypto circles, the diminishing value of fiat currencies such as the euro has long been a topic of concern. Bitcoin notably emerged from the 2008 Global Financial Crisis; its pseudonymous developer Satoshi Nakamoto said that it was a reaction to central bank incompetence.
As Bitcoin has a fixed quantity of 21 million coins, crypto fans often refer to it as an alternative to conventional currencies. Because fiat currencies are engineered to inflate, many of crypto’s most fervent supporters think they are doomed to fail in the long run. In a memorable April blog post, BitMEX co-founder Arthur Hayes predicted that Bitcoin will reach a price of $1 million by 2030.
As the euro collapsed on Tuesday, he maintained his bold forecast, stating that the decline was the first indication of a so-called “Doom Loop” in which central banks resort to yield curve management as fiat currencies begin to fail. He continued, “But please be patient, these things take time.”
Despite the steep decrease in the euro’s value over the last several months, Bitcoin and the rest of the crypto market have not done much better. Today, the leading cryptocurrency again fell below $20,000, lowering the market capitalization of all cryptocurrencies to slightly over $922.5 billion. It is around 70% lower than its high in November 2021.
Also Read: Bank Indonesia’s Governor Says Digital Assets Are Being Explored
Wallets