Former Bitmex CEO Arthur Hayes sees a bitcoin bull market ahead, fueled by soaring energy prices and rampant inflation as tensions in the Middle East escalate. He argues that rising costs will cause the value of BTC to soar in fiat terms, with newly printed dollars flooding the market. But while bitcoin’s future looks bright, Hayes warns investors to prepare for wild volatility ahead.
Arthur Hayes Predicts Bitcoin Will Skyrocket Amid Middle East Conflict
Former Bitmex CEO Arthur Hayes shared his analysis on Wednesday on the impact of escalating tensions between Israel and Iran on bitcoin and the broader cryptocurrency market. He warned that an escalating Middle East conflict, especially if it disrupts oil infrastructure or leads to a broader war, could have a significant impact on global markets.
“An escalating conflict in the Middle East will not destroy any of the critical physical infrastructure that supports cryptocurrencies,” he said, adding:
Hundreds of billions or trillions of newly printed dollars will energize the bitcoin bull market.
“Bitcoin is energy stored in digital form. Therefore, if energy prices increase, bitcoin will be worth more in fiat currency terms,” he explained.
Hayes outlined the risks, focusing on three main areas: physical destruction, rising energy prices, and monetary policy. He argued that while bitcoin mining could be disrupted in places like Iran, this would have minimal long-term impact on the network.
The real issue, according to Hayes, is how rising energy costs could affect the market. “We know that war is inflationary. We understand that the US government has to borrow money to sell bombs to Israel. We know that the Fed and the US commercial banking system will buy up this debt by printing money and expanding their balance sheets. Therefore, we know that Bitcoin will increase sharply in fiat value as the war escalates,” the former Bitmex CEO detailed.
While optimistic about bitcoin’s long-term growth, Hayes warned that the cryptocurrency market could face significant volatility, especially for smaller cryptocurrencies. He advised investors to be cautious and position their positions accordingly:
Just because bitcoin increases over time doesn't mean the price won't fluctuate wildly, nor does it mean every shitcoin will increase in price.
In short, Hayes remains confident in bitcoin’s resilience, especially as the United States and other countries engage in inflationary monetary policies. He advises investors to prepare for short-term volatility, especially amid geopolitical uncertainty in the Middle East.
