Bitcoin Price Expected to Surge After Fed’s Interest Rate Decision, Says BitMEX Co-Founder
Arthur Hayes, the co-founder of BitMEX, predicts that Bitcoin’s price will experience a rapid surge following the United States Federal Reserve’s decision to lower interest rates. He believes that this could potentially push Bitcoin towards the $70,000 mark. Previously, Hayes had anticipated Bitcoin reaching this level by March, but the Fed increased interest rates multiple times during that period.
The Impact of Real Interest Rates on Bitcoin
Hayes explains that Bitcoin’s failure to reach the $70,000 mark is due to a focus on the nominal Federal Reserve interest rate rather than the real interest rate. The market’s perception of real interest rates, which consider inflation and other economic factors, influences Bitcoin’s price performance.
Positive Real Yields and Bitcoin’s Bull Market
Hayes highlights that investors’ search for positive real yields initiated a bull market for Bitcoin on March 10th. Since then, Bitcoin has increased by nearly 29%. Despite testing and failing to break through the $30,000 level multiple times, it still remains well above its pre-BTFP bailout level of $20,000.
Bitcoin’s Appeal in a Changing Economic Landscape
The unconventional monetary policies, rising government debt, and evolving economic landscape continue to contribute to Bitcoin’s appeal. Hayes suggests that buying and withdrawing Bitcoin to your own wallet with private keys is a logical escape from handing profits over to the government.
“Escape only comes through buying Bitcoin and withdrawing it to your own wallet, where you hold the private keys. It is logical to assume the market will tire of handing profit to the government when there are financial escape hatches like Bitcoin readily available.”
Hot Take: Bitcoin Poised to Surge as Fed Lowers Interest Rates
BitMEX co-founder Arthur Hayes predicts that Bitcoin’s price will experience a rapid surge following the United States Federal Reserve’s decision to lower interest rates. He believes that this could potentially push Bitcoin towards the $70,000 mark. The market’s perception of real interest rates, along with factors such as inflation and economic conditions, influences Bitcoin’s price performance. Despite failing to reach the $70,000 level previously predicted, Bitcoin remains above its pre-BTFP bailout level. The appeal of Bitcoin continues to grow due to unconventional monetary policies, rising government debt, and a changing economic landscape.
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