Bitcoin $250,000, Ether $10,000 By Year-End? Arthur Hayes Thinks So

Arthur Hayes predicts a massive US credit boom driven by wartime-style industrial policy, likening it to economic "fascism." This boom, he argues, will fuel the largest crypto bubble yet, mirroring China's property boom. Hayes points to the Pentagon's deal with MP Materials as a model for this "QE for poor people," expanding the money supply without Congressional approval. This will cause inflation but also guarantee profits for banks and industries. He believes digital assets will serve as a pressure valve for this inflation. Two key policy shifts support this: allowing retirement plans to invest in crypto and potential elimination of capital gains tax on digital assets. This would attract younger, diverse investors, benefiting the ruling party. Stablecoins will absorb the growing federal deficit, as their holdings in US Treasury bills increase with rising crypto market capitalization. Hayes's investment vehicle, Maelstrom, is fully invested in crypto, anticipating significant price increases for Bitcoin and Ether. He projects Bitcoin to reach $250,000 and Ether $10,000 by December 2025. However, he emphasizes these are personal opinions, not investment advice. This predicted credit boom is expected to drastically impact the crypto market.