Former BitMEX CEO Says Russia Sanctions Will Push Bitcoin Price Towards $1M

Arthur Hayes has written an extended post explaining how the economic sanctions against Russia will result in a new monetary era. This era could see both gold and bitcoin rise in value as investors turn to hard assets.

The former Bitmex CEO and 100x co-founder talked about the recent economic sanctions imposed on Russia. Hayes said that there would be a “financial crisis of epic proportions.” He also said that the freezing of Russian assets marks the end of a monetary era.

The post, entitled Energy Canceled, explains how the blacklisting of Russia would have severe ramifications on the global economy. He says that the 1971 petro/eurodollar system died with the confiscation of the Russian Central Bank’s fiat currency reserves, and claims that a new monetary era is forming.

And the successor to that monetary era will love bitcoin, which he believes will reach $1 million. He provides a lengthy explanation of how the system has broken down, talking about the U.S. treasury market, the printing of USD, and much else. 

Hayes also predicts gold reaching $10,000. Both bitcoin and gold will be the winners in this new era of finance, he argues. Hard assets in general will benefit as the world acclimatizes to this new order.

Analysts have talked about the effect of economic sanctions on the global market, and how they could possibly benefit crypto. It is not yet entirely certain how events will pan out, but optimism remains.

Bitcoin’s future under current circumstances remain unpredictable

Technical signals are suggesting a potential bitcoin bull run, as the asset seems to be holding above the $40,000 level. However, it has been a turbulent few months for the asset and the general market, so it remains to be seen how things will change as the full impact of the sanctions affects the global economy.

There is now a tighter correlation between bitcoin and other markets, which could mean a negative impact on crypto as the effects kick in. But some analysts have gone so far as to say that “war could be good for bitcoin prices.” 

Pantera Capital CEO Dan Morehead also said that almost “everyone with a smartphone will use crypto within 5-10 years.”

Institutional investment has been growing at a rapid pace, representing 99% of large transaction bitcoin trading volume.

Investors certainly seem to have confidence in the market. Bill Gates, on the other hand, warns investors about bitcoin and advises average investors to show caution.