Bitcoin: Riding the Wave of Fed’s Money Printer
Arthur Hayes, the founder of BitMEX exchange, has shared his optimistic outlook for Bitcoin (BTC) in light of the current reduced activity in the crypto market.
Hayes suggests in a new essay that the Federal Reserve’s rate hike will potentially catalyze a Bitcoin bull run.
According to Hayes, it is likely that the Fed will have to print money to pay interest on reserve balances, leading to increased liquidity in the system. He predicts that affluent asset holders who receive interest payments from the Fed are expected to invest in risk assets.
All the interest paid effectively becomes a stimulus program for wealthy asset holders. When these individuals have more money than they need, they tend to purchase risk assets like Bitcoin, and AI tech stocks, among others. These assets are poised to benefit from the “wealth” created by the government and distributed as interest.
Hayes believes that the “fireworks and the real Bitcoin bull market” will begin in this year’s late third and early fourth quarter.
Regarding the reduced crypto market activity, Hayes states that historically, the American summer months tend to disappoint. However, he expects the situation to change.
Hayes expects Bitcoin to hold firm during this period and does not anticipate a retest of $20,000 or a similar level. A strong support base will form as money gradually flows into global risk asset markets.
READ MORE: Fed Rate Cuts Could Ignite Crypto Surge, Says Galaxy Digital CEO
He notes that volatility and trading volumes typically disappoint during the summer months in the northern hemisphere, and it’s unsurprising that some traders have lost interest in crypto trading temporarily due to boredom.
Hayes plans to utilize this calm period to gradually increase his Bitcoin allocation after replenishing the US Treasury’s General Account.
As more pundits start discussing the implications of the billions of dollars printed by the Fed and US Treasury and distributed as interest, Hayes believes that it will become common knowledge once again that the money printer is actively at work. And when the printer goes brrr, Bitcoin experiences a boom!
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.
