In a recent report, Forbes weighed in on the possibility of Bitcoin becoming a $1 million value asset with far-reaching consequences for other digital assets like XRP.
The Forbes report was titled: “Global Wartime Inflation —Shock $25 Trillion Predicted Fed Flip To ‘Trigger’ A $1 Million Bitcoin, Ethereum, XRP And Crypto Price Boom.”
Notably, the $1 million Bitcoin discussion emerged amid the global conflict currently at play.
Global Wartime Inflation Shooting BTC to $1M
Forbes senior contributor Billy Bambrough argued that the war-induced inflation and U.S. central bank $25 trillion ‘shock’ would heighten the appeal of cryptocurrencies. According to Bambrough, it could lead to significant changes in financial markets, with cryptocurrencies like Bitcoin and XRP playing a prominent role.
Notably, Bambrough cited Arthur Hayes, the co-founder of crypto derivatives platform BitMex, as the originator of the Bitcoin $1 million outlook. Forbes noted that Hayes anticipates the onset of what he calls “global wartime inflation.”
According to him, it will be a catalyst for a massive bull run in Bitcoin, with a target of $1 million. The crypto expert expounded on this prediction in a recent blog post. He highlighted the possibility of an escalation in the ongoing Israel-Hamas conflict and its impact on the U.S. military budget.
According to Hayes, the surge in military spending will increase government borrowing, opening the door to vast amounts of capital poured into the war effort. In his words:
“America’s military budget is set to truly explode – especially if Hamas’ allies, such as Iran, respond by entering the fray via its proxies. This will increase future government borrowing, and the sky’s the limit when it comes to the sums of capital a war can waste.”
In such an environment, Hayes argued that traditional long-term U.S. bonds may no longer be deemed a haven by investors. He believes investors will turn to alternative investments like Bitcoin amid genuine concerns about wartime inflation.
As a result, Hayes boldly predicts that the price of Bitcoin could skyrocket to $1 million in such a scenario.
The bond vigilantes are yelling “down with the dollar.”
Look out for my spicy essay “The Periphery” dropping this week where I discuss the Hamas vs. Israel war, the US Treasury market, and $BTC.
YCC = $1mm $BTC is in full effect.
Yachtzee!!! pic.twitter.com/1ABcW1esaf
— Arthur Hayes (@CryptoHayes) October 23, 2023
Position of XRP with Bitcoin Reaching $1M
Notably, crypto experts and market participants unanimously agree that Bitcoin drives the entire crypto market. In the bull run of 2021, many digital assets attained new all-time highs as Bitcoin climbed above $67k.
As a result, Bitcoin growing over 2,700% from its current point to $1,000,000 could see XRP engineer a bullish trajectory. Bambrough confirmed this possibilty in his report. Notably, should XRP grow by a similar 2,700% rate would see it trading above $16.