Arthur Hayes Predicts $1.3 Trillion Surge in Crypto Market Cap by 2024
Arthur Hayes, co-founder of BitMEX, has made a bold prediction that the total market cap for Bitcoin (BTC) and other digital assets could increase by over $1.3 trillion this year. In an essay, Hayes forecasts that by 2024, the market capitalization for all digital assets could surpass or match the all-time high (ATH) market cap achieved in 2021.
Hayes believes that despite potential price volatility in 2024, the crypto market will reach or exceed its previous ATH. Currently, the total market cap for digital assets stands at $1.764 trillion. To reach the previous ATH of $3.078 trillion, the market cap would need to grow by $1.314 trillion.
Predicted Surge in March
Hayes anticipates a surge in the market cap around March, which coincides with potential actions from the Federal Reserve to inject more liquidity into the market. This injection usually leads to a rally in risk assets like Bitcoin.
He also expects rate cuts and the renewal of the Bank Term Fund Program (BTFP) by the Fed in March. The BTFP was launched during last year’s banking crisis to provide liquidity to struggling banks.
The Bullish Case for Crypto
In his essay, Hayes emphasizes that despite recent lackluster price performance since the introduction of exchange-traded funds (ETFs), central banks and governments worldwide are creating conditions that necessitate increased money printing. He believes that once this narrative is established and a crisis occurs, fear of a financial collapse will drive more fiat debasement and lead to another leg up in the crypto bull market.
Hayes concludes by stating that he has chosen not to add any crypto risk to his portfolio until mid-March, when the BTFP renewal and Fed rate decisions are finalized.
Hot Take: Crypto Market Cap Expected to Soar
According to BitMEX co-founder Arthur Hayes, the total market cap for Bitcoin and other digital assets could experience a significant surge in the coming years. Hayes predicts that by 2024, the market cap could reach or surpass its previous all-time high. Currently standing at $1.764 trillion, the market cap would need to grow by $1.314 trillion to hit the previous ATH of $3.078 trillion. Hayes expects a potential rally in March, driven by actions from the Federal Reserve to inject liquidity into the market. Despite recent price performance, Hayes remains bullish on cryptocurrencies, citing global money printing as a catalyst for future growth.
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