Explosive Growth for Bitcoin Ahead Due to Federal Reserve Policy Changes – A. Hayes
Arthur Hayes, the co-founder of BitMEX and a veteran of the cryptocurrency industry, has predicted an explosive rally that will drive Bitcoin (BTC) to reach extraordinary valuations.
In a tweet to his 368,300 Twitter followers, Hayes said the expected changes in the US Federal Reserve’s monetary policy will drive Bitcoin’s price to $1 million.
The faster Powell hikes, the faster he will have to cut. I will be buying all dips in $BTC. Thank you ser for more entry points.$BTC = $1mm#banktermfundingprogram = Yield Curve Control
— Arthur Hayes (@CryptoHayes) March 22, 2023
Changes in Federal Reserve’s monetary policy
The co-founder of BitMEX predicts that the US Federal Reserve Chairman, Jerome Powell, will have to start lowering interest rates after steep hikes to draw down inflation to counter recessionary concerns.
According to Hayes, the rate cutting will act as the catalyst to send Bitcoin’s price soaring. He believes that the flagship crypto’s price has generally done well when more liquidity enters the markets.
Bank Term Funding Program (BTFP) and yield curve control (YCC)
Hayes also mentioned that the Bank Term Funding Program (BTFP) announced by the Fed this month to provide liquidity to struggling US banks is another injection of liquidity into the markets that will help to drive Bitcoin’s price higher.
The BTFP is similar to the injection of stimulus funding that the Fed put out during the COVID pandemic, during which Bitcoin hit an all-time high (ATH) above $69,000.
Hayes predicts that the Fed will also engage in yield curve control (YCC), a monetary policy in which the government buys bonds to cap long-term interest rates at a specific target. He says that YCC will start slow, which is a sign of financial repression. He urges investors to treat their capital well, and it will treat them well.
Yellen starts off very slowly on the road to Yield Curve Control. Welcome to the start of financial repression.
You can either be a sucker or a saint as far as your capital is concerned.
Treat your capital well and it will treat you well. $BTC = $1mm pic.twitter.com/WMQ0HHAOW1
— Arthur Hayes (@CryptoHayes) March 24, 2023
READ MORE: Bitcoin Provides Safe Harbor for Investors – InvestAnswers
China’s recent monetary policy changes
Hayes made a similar prediction for Bitcoin in reaction to recent changes in monetary policy in China with the People’s Bank of China reducing the Reserve Ratio Requirement (RRR) by 0.25%. The RRR is the amount of reserves that a commercial bank must maintain as a percentage of their deposits. The amount that commercial banks can lend or invest rises when it is lowered. He said he believes China’s move is a sign that an infusion of capital is coming to the markets.
Hayes’ predictions for Bitcoin
The crypto entrepreneur predictions are bold and highly speculative. While it is unclear whether Bitcoin will reach $1 million, there are certainly signs that the cryptocurrency markets will continue to grow as more liquidity enters the market due to central bank policies.
Whether investors will follow Hayes’ advice and “buy all dips in BTC” is yet to be seen. Nonetheless, his predictions demonstrate the growing influence of cryptocurrency in financial markets and the potential for significant gains for investors who bet on Bitcoin’s future.
Andrey Kunev
Reporter at CoinsPress
Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.
