BitMEX founder Arthur Hayes has just made positive predictions about Bitcoin (BTC), Dogecoin (DOGE), and the overall digital asset market cycle.
In a new discussion on the Alpha Only podcast, Hayes suggested that traditional financial firms (TradFi) could be the trigger for the euphoria and subsequent collapse in cryptocurrency valuations.
Hayes said TradFi will see the growth of cryptocurrencies and begin to allocate capital across large companies and projects. However, as the market cycle continues and many projects become overvalued, he predicts investors will tend to pour money into lower-quality projects, creating a large gap between real value and market price.
“Initially, credit is allocated appropriately, used for the right purposes. But as the bull market continues, you start to allocate credit to worthless projects because you have to invest to get the returns. And that’s when you see, in whatever sector is the hottest, there’s a lot of money going into it. These projects are often based on a risky business model that assumes that prices will always go up, and that’s where the imbalance comes from.”
“I don’t know where this will happen yet, but I don’t think we’re at the stage where any sector is so hot that there’s a huge influx of TradFi capital. It’s important to be aware of the risk of a crash if prices don’t reflect reality,” he stressed.
As the market enters an overheated phase, Maelstrom CEO believes that Bitcoin price is likely to go much higher.
“I think Bitcoin will hit $100,000 by the end of this year, and maybe $250,000 by the end of 2025.”
Hayes also expressed optimism about Dogecoin, predicting that the memecoin could “definitely” hit $1. He also expressed optimism about meme-related cryptocurrencies and the community in general.
Disclaimer: This article is for informational purposes only and is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
$BTC $DOGE $SOL
