BitMEX exchange founder Arthur Hayes is outlining a bullish path for Bitcoin (BTC) amid the current reduced crypto market activity.
Hayes says in a new essay that the Federal Reserve’s rate hike will catalyze a Bitcoin bull run.
According to the BitMEX founder, the Fed will likely have to print money to pay interest on reserve balances thereby increasing liquidity in the system. Hayes predicts that wealthy asset holders who received interest payments from the Fed will likely buy risk assets with the proceeds.
“All of this interest paid is effectively a stimulus program to wealthy asset holders. What do wealthy asset holders do when they have more money than they need? They purchase risk assets. Gold, Bitcoin, AI tech stocks, etc. will all be beneficiaries of this ‘wealth’ that is printed by the government and handed out as interest.”
Hayes says he believes that the “fireworks and the real Bitcoin bull market will begin in the late third and early fourth quarter of this year.”
On the reduced crypto market activity, the BitMEX founder says that the American summer months tend to “always disappoint” but that the situation will later change.
“I expect that Bitcoin will hold firm here. I do not believe we will retest $20,000 or come anywhere close. As money slowly trickles into the global risk asset markets, a strong base of support will form. Volatility and trading volumes always disappoint during the northern hemispheric summer months, so I am not surprised that degens plagued by boredom have checked out of crypto trading for the time being. I will use this time of calm to slowly increase my allocation to Bitcoin after the [US] Treasury’s General Account is replenished.
As more and more pundits start talking about what is happening to the billions of dollars printed by the Fed and US Treasury and handed out as interest, it will become common knowledge once more that the money printer is going brrr. And when the printer goes brrr, Bitcoin goes boom!”
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- Source: https://dailyhodl.com/2023/06/03/bitmex-founder-arthur-hayes-predicts-a-bitcoin-bull-market-ahead-says-to-expect-fireworks-heres-the-timeline/
