Bitcoin could be heading for another major move, with BitMEX co-founder Arthur Hayes expecting BTC to reach $126,000 by the end of 2026. His bullish view is based less on crypto hype and more on a growing global debt problem, rising pressure on bond markets and the possibility of fresh liquidity from central banks.

In a recent interview he revealed that the current crypto market 2026 could eventually hit a point where policymakers have little choice but to inject more money into the system, creating a strong setup for Bitcoin.

Debt Could Become Bitcoin’s Biggest Catalyst

Hayes sees the growing U.S. debt burden as one of the biggest issues facing markets. With around $40 trillion in U.S. debt and rising interest costs, he argues that keeping rates high for too long could put more pressure on Treasury markets.

The recent increase in Treasury buybacks, is seen an early sign that officials are willing to step in if yields move too high.

That means more liquidity more dollars chasing risk assets, and Bitcoin could be one of the prime beneficiaries.

Why FIMA Could Change the Game

Hayes is also following the Fed’s FIMA repo facility. Countries such as Japan hold huge amounts of U.S. Treasuries but may eventually need to sell those assets and bring capital back home.

A large wave of Treasury selling could push yields higher and create problems across global markets.

Hayes said the Fed could instead provide dollars against those Treasury holdings, allowing foreign governments to access liquidity without aggressively selling their bonds.

If that facility is expanded significantly, Hayes sees it as a potential new source of dollar liquidity, and a major positive for Bitcoin.

What If Bitcoin Falls to $35K?

Hayes also outlined a much more painful scenario. If Bitcoin suddenly crashes to $35,000 because of forced selling or a major liquidation event, he does not necessarily see it as the start of another long bear market.

Instead, he sees it might become the capitulation candle investors have been waiting for, similar to March 2020.

In short, if policymakers respond with fresh liquidity, this will be a buying opportunity rather than a reason to abandon Bitcoin.

Why Hayes Sees $126K

On the other side, if liquidity expands while Bitcoin is already breaking higher, he expects momentum to accelerate. Then in that case a move toward $120,000 potentially turns into a much larger rally because many investors remain underallocated to BTC.

For 2026, his realistic target is $126,000, taking Bitcoin above its previous all-time high.

Beyond that, Hayes sees the possibility of BTC eventually reaching $500,000 if global liquidity keeps expanding.

For him, the main risk is not another crypto crash but a major disruption such as war or a cyberattack that takes down critical infrastructure.

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