Hayes: Money Printing in the US Will Push Bitcoin to $500,000

• Arthur Hayes believes the technical mechanisms for expanding the money supply are already in motion.
• He forecasts this could push bitcoin to $250,000-$500,000.
• The expert also called Ethereum the most attractive asset on a risk-return basis.

Bitcoin could rise to $250,000-$500,000 amid an expanding US money supply, prominent investor and analyst Arthur Hayes said. According to him, the relevant technical mechanisms are already active.

Hayes noted that the money supply is expanding through technical mechanisms that, in his view, effectively function like money printing.

Hayes said that against this backdrop, bitcoin, gold, and other similar assets are rising. He described the current stage as a “capital misallocation” phase, when new money is funneled into loans to roll them over and support investments already made.

Will Bitcoin Set a New All-Time High?

Hayes said bitcoin could break its all-time high by the end of the year. At the same time, he pointed to political constraints ahead of the US midterm elections.

According to him, one of the main issues for American voters is the cost of living. Therefore, Donald Trump’s administration will have to explain stimulus measures without directly acknowledging an expansion of the money supply.