War and Inflation Could Propel Bitcoin Prices, Says BitMEX Co-Founder

Arthur Hayes, co-founder of BitMEX, forecasts a significant rise in Bitcoin’s price driven by geopolitical tensions, particularly in the Middle East.

He believes that increasing military spending will lead the U.S. government to print more money, resulting in inflation and a weaker dollar. This monetary expansion could encourage investors to turn to Bitcoin as a hedge against inflation.

Recent inflation data, including a rise in the Producer Price Index to 1.8%, heightens concerns about economic stability. Hayes argues that historical trends show wars often trigger monetary expansion, further enhancing Bitcoin’s appeal as a decentralized asset.

He expects that escalating conflicts, particularly between Israel and Iran, will push energy prices higher, benefiting Bitcoin as fresh capital enters the market. Despite potential volatility, he views Bitcoin as a modern-day equivalent to gold, likely to thrive under inflationary pressures.

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To manage risk during this uncertainty, Hayes has reduced exposure to smaller cryptocurrencies and urges traders to focus on financial security. He asserts that ongoing U.S. military aid, funded by debt, will continue to support Bitcoin’s long-term growth, making it a strong hedge against fiat currency devaluation.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.