Fed Expansion Could Send Ethereum Soaring to $10,000

Arthur Hayes, a prominent figure in the cryptocurrency market, has predicted a new bull run. He believes that the Fed's expansion of liquidity conditions could trigger this increase.

In his latest article, Hayes suggested that if the scenario materializes, Ethereum could reach $10,000 by the end of 2026. This prediction is based on his analysis that increased dollar liquidity and a loosening of global financial conditions would lead to upward pressure on risky assets like Bitcoin and Ethereum.

Hayes also mentioned potential selling pressure on French government and bank bonds, which could reduce funding activities in the US repo market. If this situation increases U.S. Treasury financing costs and triggers hedge funds to reduce leverage, the New York Federal Reserve could expand its repo operations and increase the Fed's balance sheet by approximately $10 billion per month.

Hayes believes that such an intervention could create renewed expansion in the Fed's balance sheet, leading to increased dollar liquidity and a loosening of global financial conditions. This development would likely be a significant bullish catalyst for crypto assets.