BitMEX founder Arthur Hayes has just made positive predictions about Bitcoin (BTC), Dogecoin (DOGE), and the digital asset market cycle in general.
In a recent discussion on the Alpha Only podcast, Hayes suggested that traditional financial companies (TradFi) could be the trigger for excitement and then the collapse in cryptocurrency valuations.
Hayes stated that TradFi will recognize the growth of cryptocurrency and begin to allocate capital through large companies and projects. However, as the market cycle continues and more projects become overvalued, he predicts that investors will tend to pour money into lower-quality projects, creating a significant gap between actual value and market price.
“Initially, the credit source was allocated reasonably and used for appropriate purposes. But as the price surge continues, you start allocating credit to worthless projects because you feel compelled to invest to achieve returns. And that's when you realize that in any hot sector, a lot of money will flow in. These projects often rely on a highly risky business model with the assumption that prices will always rise, and this is the source of the asymmetry.”
“I don't know where this will happen, but I don't think we have reached a stage where any sector is too hot for a massive influx of capital from TradFi. It is crucial to be aware of the risk of collapse if prices do not accurately reflect reality,” he emphasized.
As the market enters an overheating phase, the CEO of Maelstrom believes that the price of Bitcoin is likely to rise much higher.
“I think Bitcoin will reach $100,000 by the end of this year, and it could reach $250,000 by the end of 2025.”
Hayes also expressed optimism about Dogecoin, predicting that this memecoin “definitely” could reach $1. Additionally, he has a positive outlook on cryptocurrencies related to memes and the community in general.
relating to memes and the community in general.
