Arthur Hayes, a leading figure in the cryptocurrency market, has made a remarkable bullish prediction for Bitcoin. Speaking at the Bitcoin 2026 Conference, Hayes argued that based on current market dynamics, the price of Bitcoin could rise to $125,000.
According to Hayes, the recent pullback in Bitcoin from its peak is due to job losses among knowledge workers and the resulting credit crunch caused by the widespread adoption of artificial intelligence technologies.
However, Hayes noted that the market focus shifted with the start of US-Iran tensions in February, stating that investors are now pricing in the risk of “wartime inflation” instead of “AI-induced recession.” He said this shift paved the way for Bitcoin to regain strength against the Nasdaq Composite, which is largely represented by technology stocks.
Hayes also touched upon the policies of the US Federal Reserve, downplaying concerns about hawkish monetary policy and stating that the impact of tightening on market liquidity would be limited.
In contrast, he argued that the eSLR regulations, which came into effect in April and allow banks to extend more credit, would create approximately $1.3 trillion in new lending capacity. Hayes maintained that this increase in liquidity and the defense spending triggered by the war economy would offset the economic slowdown caused by artificial intelligence.
Hayes, arguing that the market has passed its lows, stated that current conditions create a strong bullish environment for Bitcoin, emphasizing that investors should be prepared for higher price levels in the coming period.
*This is not investment advice.