Huge Said The Fed's "Money Printer" Flip Would Cause A $20 Trillion Bitcoin, Ethereum, XRP, And Crypto Price Boom: "Bailout Is Coming"

In recent weeks, the price of bitcoin and other cryptocurrencies—including popular coins like XRPXRP 0.0% and Ethereum—have skyrocketed (despite a significant warning from the Federal Reserve).

The price of bitcoin has surged to about $50,000 per coin, bringing billions of dollars to the bitcoin, ethereum, XRP, and cryptocurrency market as a whole. As a result, the U.S. government was forced to declare a "emergency" in the cryptocurrency space.

Crypto trader Arthur Hayes has now claimed that a Fed flip will lead the price of bitcoin to explode to $1 million—something that would give bitcoin a market capitalization of about $20 trillion—as one reputable analyst discloses a surprising hypothesis for the latest bitcoin price pump.

"It’s time for some bank failures and fresh monetary pow from [Fed chair Jerome] Powell and [U.S. Treasury secretary Janet] Yellen," Less than a year after Silicon Valley Bank failed, Hayes, who launched the Bitmex cryptocurrency exchange and currently manages a family office fund, posted on X citing widespread concerns on Wall Street about the possibility of a new financial disaster. First Republic collapsed in May, making it the biggest US loan failure since 2008.

The stock of New York Community BancorpNYCB +16.9% (NYCB) fell this week on the disclosure of an unexpected loss.

"[Powell] says U.S. [economy] and banks [are] strong to very strong," Hayes continued. "NYCB disputes this. Which is more accurate, the central banker or the market? The two things that even Neo-Keynesians can't wish away are time and compound interest. The rescue is on the way.

In addition to the enormous expenditure the U.S. government incurred during the Covid epidemic and lockdowns, Hayes prophesied that the price of bitcoin will soar to $1 million if the Fed and government are compelled to provide yet another bailout.

A similar wager that bitcoin will reach $1 million within months was placed last year by tech investor and former chief technology investor of CoinbaseCOIN +7.1% Balaji Srinivasan, who was forced to confess loss when the cryptocurrency failed to rally.

Srinivasan has persisted in his forecast that the US dollar will "collapse against bitcoin," and this week the president of Russia issued a warning that the Biden administration is "killing" the currency.

Other observers of the bitcoin, Ethereum, XRP, and cryptocurrency markets have applauded the most recent increase in the price of bitcoin.

"The market has boldly entered a greed state, which we also observed a month ago," senior market analyst at FxPro Alex Kuptsikevich stated in an email.

"The corrective retreat from last month and the consolidation in the first part of February have provided support for a genuine breakout. Over the past four days, BitcoinBTC 0.0% has increased by about 10%, currently trading at $46,200. The focus today is on whether bitcoin can rise above the previous peaks, from which it declined soon following the introduction of spot ETFs."