Ethereum Could Soar to $10K by 2026 Amid French Banking Crisis, Says BitMEX Co-Founder

BitMEX co-founder Arthur Hayes believes that Ethereum could hit $10,000 by 2026 due to a potential crisis in French banking. This prediction is based on Hayes' argument that the implosion of three global systemically important lenders - BNP Paribas, Crédit Agricole, and Société Générale - would force the Federal Reserve to expand its balance sheet.

Hayes noted that these banks account for approximately 20% of repo lending, and if they pull back, the New York Fed must increase its Reserve Management Purchases to keep the Treasury market funded. This could lead to a surge in dollar liquidity, causing Ethereum's price to quadruple from its current value.

The euro-yen exchange rate is seen as an early warning signal for this event, and Hayes predicts it will fall from around 185 to 140 or below by June next year. This would indicate that the sequence of events leading to a Fed liquidity surge has begun.