Confirmed Nomination of Trump's Candidate for Fed Triggers Prediction of Bitcoin Hitting $1 Million by Arthur Hayes
The confirmation of Stephen Miran to the Federal Reserve Board has sent ripples through financial markets, with some analysts predicting a potential surge in Bitcoin's price.
Miran, a former leading economic expert and chairman of the Council of Economic Advisers at the White House, has garnered broad political support, as evidenced by his swift confirmation by the Senate. His nomination to the Federal Reserve Board has been met with interest, given his history and recent discussions about moderate long-term interest rates.
Bond traders are reconsidering established market rules in light of Miran's confirmation and his stance on interest rates. One such analyst, Hayes, has based a Bitcoin price prediction on this development, suggesting that it could propel BTC's price to seven figures.
Hayes argues that the recognition of the third mandate, which some media outlets are framing as a potential 'third mandate' alongside price stability and maximum employment, is similar to yield curve control. In this scenario, a central bank sets a specific yield for government bonds. If the Federal Reserve were to implement yield curve control, as Hayes predicts, it could have a significant impact on Bitcoin's price.
The convergence of U.S. fiscal expansion, looming rate cuts, and growing institutional appetite for Bitcoin creates a macro backdrop that might favor Hayes' bold call. The CME FedWatch assigns a 96% probability of a 25 basis-point cut by the Federal Reserve.
At the time of writing, Bitcoin has gained 5.1% over the last seven days, pushing its price past $117,000. This marks a 5.9% increase over the past two weeks, though its monthly gains remain modest at 1.7%. Some parts of the crypto community celebrate Miran's confirmation, seeing it as potentially making the central bank more open to digital assets.
In the past, Miran has written positively about Bitcoin, stating 'Bitcoin fixes this.' Whether Miran's presence at the Fed will accelerate Bitcoin's trajectory remains uncertain. Hayes has stated that rigid four-year crypto cycles are no longer applicable, and that continued fiscal stimulus and money printing from global central banks will create a favorable environment for hard assets like Bitcoin.
Hayes made these predictions in a recent interview with influencer Kyle Chassé and in a post on X. He believes that this political change could lead to aggressive monetary expansion, which could in turn push Bitcoin's price to a million dollars. Bitcoin sits just 5.6% below its all-time high of $124,457 set on August 14.
As the impact of Miran's confirmation unfolds, the financial world will be watching closely to see if his appointment will indeed lead to a surge in Bitcoin's price.
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