Bitcoin: Here is What’s Driving the Recent Price Surge, According to Arthur Hayes
Arthur Hayes, the founder of BitMEX, recently shared his thoughts on the state of the US banking crisis and its impact on the price of Bitcoin.
According to Hayes, the ongoing crisis is one of the major drivers of Bitcoin‘s recent price surge. He claims that the uncertainty surrounding the Federal Reserve’s actions in response to the crisis drives up both gold and Bitcoin.
Hayes argues that the banking crisis in the United States is far from over and that it will continue until the Federal Reserve cuts short-term interest rates to below 2% and steepens the yield curve.
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The US banking crisis is not over. Until the Fed cuts short term rates below, I believe, 2% and steepens the yield curve, we will see bank after bank bite the dust and depositors will play deposit roulette on whether or not Yellen bails them out.— Arthur Hayes (@CryptoHayes) April 26, 2023
He warns that until this happens, we will see more banks fail, and depositors will be left playing “deposit roulette” to determine whether or not the US Treasury will bail them out.
Hayes also predicts that First Republic, a US bank, is on the verge of collapse and will likely be seized by the Federal Deposit Insurance Corporation soon.
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He believes this event will cause the market to realize that the entire US banking deposit base is de-facto guaranteed by the government, which he describes as “massively inflationary.” In his view, this is why both gold and Bitcoin are rising on the news of First Republic’s impending collapse.
The news has deepened the ongoing US banking crisis, which shows no signs of abating anytime soon. Indeed, First Republic’s shares fell by over 50% earlier this week as customers withdrew over a hundred billion dollars from the bank.
Despite a 2.4% dip in the last 24 hours, Bitcoin is currently trading at $29,540, a 8% gain from its seven-day low of $27,243.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
