BitMEX co-founder Arthur Hayes has come up with his latest Bitcoin [BTC] prediction. On the 12th of May, Hayes, in a blog post titled “The Butterfly Touch,” noted that Bitcoin’s next move to $126,000 is inevitable.
This prediction by Hayes comes at a time when BTC was trading at $81,067.73 at press time after modest daily and weekly hikes.
On what grounds does Hayes believe BTC will hit $126K?
In his piece, Hayes proposed that the primary catalyst pushing Bitcoin’s growth is artificial intelligence (AI). The argument is strengthened by the competition between China and the United States for leadership in AI development.
Remarking on the same, Hayes added,
The presidents of America and China (Trump and Xi) both believe that AI and tech supremacy are integral to the survival of their fiefdoms.
The author contends that governments and central banks are being pressured to continue printing money and extending credit by factors such as growing military spending, growing investor optimism, and the global AI race.
He thinks that in such high-liquidity settings, cryptocurrencies like Bitcoin typically do very well. Slamming Bitcoin critics, Hayes even said,
Many haters will refuse to participate in this Bitcoin rally because it underperformed tech and gold substantially over the last twenty-four months.
Additionally, he believes that once Bitcoin breaks past the $90,000 price level, short sellers and options traders who were betting against the asset might be compelled to repurchase their positions, which would push prices even higher.
Are on-chain metrics echoing the same bullish setup?
This occurs at a time when Bitcoin’s Taker Buy Sell Ratio was hovering around 0.93, indicating that aggressive sellers are marginally stronger traders who might be profiting from the recent surge.
However, the chart also suggests that the market structure has not yet been disrupted by selling pressure because the price is still hovering around highs.
Additionally, the Bitcoin Spot Volume Bubble Map indicated that the accumulation is occurring gradually. Simply put, the rally isn’t yet exhibiting the typical mania behavior, wherein buyers are active but restrained.
However, the nine-day run confirms what AMBCrypto recently reported, which is that the profit is sustained rather than a one-time occurrence.
All of these metrics point to the impossibility of Hayes’ prediction that Bitcoin would reach $126K in value. However, the current rally appears to be structurally sound, and there may still be space for the bull structure to grow.
Final Summary
- Arthur Hayes thinks the global AI race and improving liquidity conditions could push Bitcoin to $126K, but it must first surpass $90,000.
- Bitcoin’s capacity to maintain gains in the face of continuous profit realization raises the possibility that the market is still in the middle of a longer bullish cycle.