BitMEX co-founder Arthur Hayes forecasts Bitcoin reaching approximately $125,000 by the end of 2026, citing increased wartime defense spending and relaxed U.S. banking regulations as catalysts for new liquidity in financial markets. Speaking at Bitcoin Vegas 2026, Hayes highlighted the shift in market narrative from AI-induced credit deflation to wartime inflation following U.S.-Iran tensions. Hayes also noted that the enhanced supplementary leverage ratio adjustment, effective April 1, could result in $1.3 trillion in new loans, potentially creating around $4 trillion in total credit through a banking multiplier effect. This development is expected to significantly impact the financial landscape, driving further interest in Bitcoin as a hedge.