Arthur Hayes declared: “To be re-elected, American politicians must push the price of Bitcoin up!”

Arthur Hayes predicts Bitcoin will hit $1 million by 2028

Bold predictions amid market volatility
BitMEX co-founder Arthur Hayes made a splash at the SALT conference in London by predicting that Bitcoin will surpass $1 million and Ethereum will reach $20,000 by 2028.

He believes the cryptocurrency market will see a sharp rally before the next US presidential election.

The forecast came just hours after Bitcoin fell below $100,000 for the first time since May , currently trading around $103,000, 19% below its all-time high of $126,000, while Ethereum is down 32% from its August high.

Government borrowing policy is a driver of Bitcoin price increase
According to Hayes, the reason why Bitcoin could increase sharply lies in the expansionary fiscal policies of governments .

He analyzed that countries are choosing to borrow more instead of cutting spending or raising taxes, because “austerity policies are unpopular with voters . ”

Increasing public debt means pumping in more fiat money, or as Hayes puts it, “central banks are pressing the money printing button.”

The inevitable result is rising inflation , and Bitcoin will become a store of value as fiat currencies lose purchasing power.

US public debt at record levels, long-term risks rising
According to data from the US Treasury Department , the national debt has reached $38 trillion , the highest level since the pandemic.

Hayes said the likelihood of politicians abandoning the path of borrowing is “ virtually zero”, because stopping borrowing and raising taxes would mean losing votes. He warned:

“This problem can be solved, but no one wants to trade a seat of power to do it.”

Hayes concludes that if governments are forced to stop borrowing, the world could face a deep deflationary cycle like the 1930s – and in that scenario, Bitcoin would emerge as the optimal hedge asset.