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Highlights
- Hayes expects more liquidity to flow into Bitcoin as the Fed begins cutting rates.
- The BitMEX co-founder also expects governments to print more money, which is bullish for BTC.
- He also believes that this might just be the middle of the bull cycle.
BitMEX co-founder Arthur Hayes has given his opinion on how long the Bitcoin bull cycle could last. This comes amid discussions about whether the flagship crypto will continue its 4-year cycle or if things could change with a projected rate cycle.
Hayes Predicts Bitcoin Bull Cycle To Extend To 2026
In an interview, the BitMEX co-founder predicted that the bull cycle could extend to next year, stating that he believes the market is just entering the middle of the cycle. Hayes alluded to a potential rate-cutting cycle as one of the catalysts that could extend this market cycle.
He projects that the Fed will begin cutting rates soon and that this rate-cutting cycle could continue until mid-2026. He suggested that Powell is likely to give in to pressure from Trump to lower interest rates significantly, which would help extend the Bitcoin bull cycle.
Hayes explained that lower interest rates will help inject new liquidity into the economy, and a significant portion of it will likely flow into BTC. As CoinGape reported, the Fed is likely to make a rate cut at the FOMC meeting next week, with economists predicting a 25 bps rate cut and then additional cuts by year-end.
Meanwhile, regardless of whether the Fed makes multiple rate cuts or not, Hayes predicts that Trump will find a way to print more money and stimulate the economy, which will help extend the Bitcoin bull cycle. The BitMEX founder noted that money printing is typically for BTC, since it has a limited supply, unlike these fiat currencies.
Hayes’ comments follow veteran trader Peter Brandt’s statement, in which he opined that the bull market may peak this month. He suggested that this would happen based on historical cycles, which indicate a market top is soon to come.
On Bitcoin Lagging Behind S&P 500 and Gold
Arthur Hayes also commented on the state of the market, with Bitcoin lagging behind the S&P 500 and gold, which have continued to hit all-time highs (ATHs) as the global M2 liquidity rises. He suggested that this isn’t something to worry about, especially considering that BTC has been the best-performing asset since its creation.
The Bitcoin price has continued to range sideways since hitting a new all-time high (ATH) of around $124,000 last month. This has led to speculations that this may have marked the top for the flagship crypto.
However, Hayes doesn’t believe that is the case, as he alluded to the fact that governments will soon start printing more money, while some of this liquidity will flow into BTC. Meanwhile, as to when to exit the market, the BitMEX co-founder stated that the macro environment will determine when he exits the market.
He stated that the government is just starting to print more money, which suggests that there is still considerable upside to the market. Hayes again reiterated that he doesn’t believe in the four-year cycle and that BTC could still rally up to $200,000.
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