BitcoinBTC, ethereum and crypto prices have been trading sideways for months (though the CEO of one major crpyto company thinks that could be about to change).
The bitcoin price has dropped back from year-to-date highs of just over $30,000 per bitcoin, with the ethereum price falling along with it—even as excitement over a possible end to Ripple’s long-running legal battle has helped XRP break out.
Now, after JPMorgan analysts issued a serious $1.1 trillion warning, the former chief executive of bitcoin and crypto exchange Bitmex, Arthur Hayes has predicted a crypto market “powder keg” could go off as soon as this year.
It’s at the beginning of a bull run you need up-to-date information the most! Sign up now for the free CryptoCodex—A daily newsletter for traders, investors and the crypto-curious that will keep you ahead of the market
“You’re basically putting this powder keg together of a situation that’s going to be exploding in [the third and fourth quarter] of this year, and I think ultimately it will be good for bitcoin,” Hayes, who now runs a family office called Maelstrom, told the What Bitcoin Did podcast. “It will be quite volatile on the upside and the downside.”
Bitcoin, ethereum and other major cryptocurrencies have cheered a U.S. debt ceiling deal, despite president Joe Biden’s earlier stark crypto warning.
Hayes, who last year was sentenced to two years of probation after pleading guilty to charges he failed to implement an anti-money laundering (AML) program at Bitmex, pointed to this year’s banking crisis and expectations the U.S. government will issue just over $1 trillion in new Treasury bills in coming months, potentially sucking hundreds of billions of dollars from the market.
Sign up now for CryptoCodex—A free, daily newsletter for the crypto-curious
“I don’t think we get up to $70,000 this year, I think next year is when we cross that barrier, then we get the blow off top ,  and then it’s Armageddon,” Hayes said. “It doesn’t have to be too straightforward, we just have this situation, we have this tinderbox of too much money, no trust and people trying to eke out a living for themselves.”
Follow me on Twitter.