BitMEX co-founder Arthur Hayes has come up with his latest Bitcoin [BTC] prediction. On May 12, Hayes noted in a blog post titled “The Butterfly Touch” that Bitcoin’s next move to $126,000 is inevitable.
This prediction from Hayes comes as BTC was trading at $81,067.73 at the time of writing, following modest daily and weekly gains.
On what grounds does Hayes believe BTC will reach $126K?
In his partHayes suggested that the main catalyst driving Bitcoin’s growth is artificial intelligence (AI). The argument is strengthened by the competition between China and the United States for leadership in AI development.
Hayes noted the same, adding:
The presidents of America and China (Trump and Xi) both believe that AI and technological supremacy are integral to the survival of their fiefdoms.
The author argues that governments and central banks are under pressure to continue printing money and extending credit, due to factors such as rising military spending, growing investor optimism and the global AI race.
He thinks that cryptocurrencies such as Bitcoin tend to do very well in such high-liquidity conditions. Hayes slammed Bitcoin critics, even saying:
Many haters will refuse to join this Bitcoin rally as it has significantly underperformed against tech and gold over the past twenty-four months.
Furthermore, he believes that once Bitcoin crosses the $90,000 price level, short sellers and options traders who bet against the asset could be forced to buy back their positions, which would push prices up even further.
Do the on-chain metrics reflect the same bullish stance?
This comes at a time when Bitcoin’s Taker Buy Sell Ratio has been hovering around 0.93, indicating that aggressive sellers are marginally stronger traders who could potentially benefit from the recent surge.
However, the chart also indicates that the market structure has not yet been disrupted by selling pressure, as the price is still hovering around high peaks.
Moreover, the Bitcoin Spot Volume Bubble Map indicated that the accumulation is gradual. Simply put, the rally is not yet showing the typical manic behavior, where buyers are active but cautious.
However, the nine-day run confirms what AMBCrypto recently reported, which is that the gains are sustainable and not a one-time event.
All these numbers point to the impossibility of Hayes’ prediction that Bitcoin would reach a value of $126,000. However, the current rally appears to be structurally sound and there may still be room for the bull structure to grow.
Final summary
- Arthur Hayes thinks the global AI race and improving liquidity conditions could push Bitcoin to $126,000, but it needs to get above $90,000 first.
- Bitcoin’s ability to maintain gains despite continued profit realization raises the possibility that the market is still in the midst of an extended bullish cycle.