TechFlow news, according to former Bitmex CEO Arthur Hayes, Bitcoin will experience significant volatility in the second half of the year due to a "powder keg" effect caused by the U.S. banking crisis and the exploding national debt.
On May 26, Hayes made numerous predictions about the current economic outlook and Bitcoin price during an appearance on the podcast "What Bitcoin Did." He expects Bitcoin won't reach the $70,000 level until 2024, pointing to quantitative easing, increased money supply, and broader social unrest as two main driving forces behind such events that could lead to sharp declines in both stock and cryptocurrency prices.
Hayes added that he does not believe Bitcoin will hit a new all-time high at any point this year: "While I think this is ultimately beneficial for Bitcoin, the price swings could be quite large."
In addition, other analysts have offered more positive commentary on Bitcoin's short-term price outlook. For example, Tommy Honan, Head of Market Analysis at cryptocurrency exchange Swyftx, said resolving debt issues might "attract traders back into the market and trigger the next surge in Bitcoin's price."
A May 24 report from Barron's noted that last week JPMorgan strategists indicated the current gold price might imply a Bitcoin price of $45,000. Analysts believe Bitcoin’s upcoming halving event next year will support this potential price forecast, though they also see ongoing U.S. regulatory crackdowns on cryptocurrencies and the fallout from the FTX collapse as factors that will "limit any potential upside."
Hayes also shared aspects of his personal investment strategy, noting that he is watching ETH staking closely, monitoring developments in Bitcoin Ordinals, and has invested in Pepe (PEPE).
Hayes is known for his controversial price predictions. For instance, in April 2020, he warned that Bitcoin could plunge 57% from $7,000 to $3,000—but Bitcoin remained stable and rebounded 28% over the following three months, reaching $9,000.
More recently, Hayes predicted ETH would reach $5,000 following the Ethereum Merge upgrade. After the successful implementation of The Merge, Ether's price initially declined for several months before recovering early this year alongside the broader crypto market.
