BitMEX founder and crypto veteran Arthur Hayes lays out a bullish outlook for Bitcoin (BTC), Dogecoin (DOGE) and the broader digital asset market cycle.
In a new discussion on the Alpha Only podcast, Hayes says traditional financial companies (TradFi) could be to blame for the upheaval and subsequent collapse in crypto valuations.
Hayes says TradFi will see the cryptocurrency rise and eventually be distributed through the big companies and projects. But as the market cycle continues and many projects become overvalued, Hayes says investors will most likely pursue less legitimate projects, leaving huge gaps between price and reality.
“And so the credit is allocated well in the beginning, there are good uses for it. But the longer we get in the tooth for the rally, you start to allocate credit to dogsh*t, because you have to allocate to get paid, and that’s when you discover that whatever the hottest wallet is, there way too much money goes into it. they’re probably taking some risk in their business model, which is based on the price always rising, and that’s where you get the kind of disruption.
I don’t know yet where that’s going to be, I don’t think we’re there yet in terms of a sector that’s so hot that all this debt capital is going into it, especially from the TradFi space, and I think that’s where you have to be aware of the risk of an excess of people if prices do not correspond to reality.”
When the market gets frothy, Maelstrom’s CIO says Bitcoin will likely have much higher prices.
“I think we’ll be at $100,000 by the end of the year and probably at $250,000 by the end of 2025.”
Hayes also thinks Dogecoin could “definitely” go to $1 and is generally optimistic about memes and memecoins in general.
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