BitMEX co-founder Arthur Hayes has suggested that a change in US banking regulations could propel Bitcoin (CRYPTO: BTC) to a $1 million valuation.

What Happened: Hayes, addressing his followers on the social media platform X, indicated that if US banks receive an exemption from the supplementary leverage ratio (SLR) rule, it could lead to increased market liquidity, significantly boosting Bitcoin's value.

The SLR rule, initially adjusted during the COVID-19 pandemic, was designed to alleviate Treasury market pressures and enhance banks' credit provision capabilities.

Hayes noted that a campaign by US banks for an SLR exemption is underway, which would allow them to purchase U.S. Treasury securities with substantial leverage, potentially funding the extensive US government debt issuance.

He described this development as "another signpost on the road to BTC = $1 million."

The PR campaign by US banksters to get an SLR exemption is in full swing. This is  news on my bloomie this morning.
This allows banks to buy USTs with infinite leverage and easily fund the insane amount of USG debt issuance.
Another signpost on the road to $BTC = $1mm pic.twitter.com/7cGwxqisPy

— Arthur Hayes (@CryptoHayes) January 1, 2025

Last month, Hayes expressed his belief that Bitcoin could reach $1 million in this cycle, driven by global central banks' increased money supply.

He emphasized that governments worldwide might print unprecedented amounts of money to counter slowing global growth, contributing to Bitcoin's potential surge.

Why It Matters: The prediction by Arthur Hayes aligns with other optimistic forecasts in the cryptocurrency space.

Fundstrat's head of research, Tom Lee, recently suggested that Bitcoin could surpass $250,000 within the next year, citing the impact of halving cycles and potential government adoption. Lee highlighted Bitcoin's recent halving event as a pivotal factor that could drive price momentum.

Additionally, Ark Invest's Cathie Wood has projected that Bitcoin's price might reach up to $1.5 million by 2030.

Wood attributes this potential surge to regulatory relief and Bitcoin's growing distinction from other assets. She also noted increasing institutional interest in Bitcoin, which could further bolster its value.

Moreover, the incoming Trump administration is expected to provide a positive environment for the cryptocurrency industry, potentially offering regulatory clarity and a more crypto-friendly SEC. This could create favorable conditions for Bitcoin and other digital assets to thrive.

Price Action: Bitcoin was trading at $98,154 at the time of writing, up by 1.84% in the past 24 hours.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.