At a recent Las Vegas conference, the BitMEX co-founder told the crowd to stop worrying about “AI deflation” (the fear that AI would crash credit markets). Why? Because war changes everything.
Hayes says the market has now shifted to Wartime Inflation. The US is becoming the “Department of War” – defense spending near $1.5 trillion means the money printer has to run.
But here’s the kicker: an April 1st rule change (ESLR) allows banks to lend out **$1.3 trillion** in new credit. And for every $1 banks lend, credit multiplies by 3x. That’s nearly $4 trillion of fresh liquidity flooding the system.
What about the new Fed chair fears? Hayes says don't worry – whoever it is will need to keep bond markets stable so the Treasury can borrow. That means liquidity stays high.
His end-of-year price target for Bitcoin? $125,000.
“Anyway, I’m wrong sometimes,” he laughed. But his message was clear: the flood is coming. Bitcoin is the lifeboat.
Are you ready? 🚀