Could Ethereum really lose its top 3 spot? | Credit: CCN.
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Key Takeaways
Arthur Hayes predicts Ethereum will drop out of the top 3 cryptocurrencies by 2030 as AI-focused coins take over.
He also forecasts Bitcoin rallying to $125,000 by year-end.
Hayes dismisses recession fears, saying governments will print money to avoid any big crash.
Arthur Hayes, former BitMEX boss and famous crypto bull, has sparked some members of the crypto community to speak out after delivering a bullish Bitcoin price prediction and a controversial take on Ethereum’s long-term outlook.
In a recent podcast appearance with Kyle Chasse, Hayes also gave his thoughts on why a future recession may not be worth worrying about.
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Hayes has said he is already heavily invested, mainly in Bitcoin, and is waiting for clearer signs such as more bank lending.
In his opinion, events such as the Iran tensions may prompt the Fed to loosen up, printing more money that flows directly into risk assets.
Bitcoin, he argues, is the finest hedge in this volatile environment.
However, his exact price projections have historically overshot or undershot, so don’t bet the house just yet. Some were early, while others missed significantly.
The recent prediction has led some in the community to speak out, with one X user writing: “He may be directionally correct over long time frames, but that’s not that hard to do, and when he talks short to mid term he’s usually wrong.”
In February, Hayes warned that Bitcoin could fall toward $60,000, citing rising deflationary risks.
He said the cryptocurrency’s decline — and its divergence from the Nasdaq 100 — suggests that credit conditions may be deteriorating even as equities remain relatively stable.
Although Hayes has repeatedly said Bitcoin could eventually reach new highs following a policy response, he warned that a path lower — potentially toward $60,000 — may come first as liquidity tightens.
Hayes Doesn’t See a Recession Hitting Hard
Elsewhere in the podcast, Hayes dismissed recession fears, stating that a typical downturn “doesn’t matter” in today’s environment.
He described it as a wartime economy in which governments will not allow the system to implode.
“JP Morgan’s fine. City banks, fine. Bank of America is fine, right?
“The Fed outlawed regional banks from failing in 2023 right? That’ll never happen again, right?
“As soon as you get into trouble, then the Fed gives a loan to JP Morgan, go and buy you. And so everything is hunky dory.”
Hayes claimed he regularly monitors bank lending and Fed movements, but believes geopolitics and AI disruption will outweigh any typical downturn.
He believes that liquidity prevails during times of conflict and thus there will be no meltdowns like in 2008, because the system is now designed to avoid them with endless fiat support.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
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