Arthur Hayes’ Viewpoint Signals a Turning Point for Bitcoin
Arthur Hayes, the former CEO of BitMEX, recently shared his perspective on the future of Bitcoin. In his blog post titled “The Periphery,” he explores how geopolitical tensions and economic uncertainties can impact Bitcoin’s trajectory.
Wartime Economics and Bitcoin’s Rise
Hayes emphasizes the risks posed by the United States’ involvement in new wars and how these escalations can have significant implications for the global economy. He also highlights the halt in interest rate hikes by the Federal Reserve despite looming inflation, which he sees as a potential bearish signal for the economy.
Hayes further explains the interconnected relationship between banks’ hedging needs and the borrowing requirements of the US war machine in the Treasury market. He suggests that if long-term US Treasury bonds no longer offer expected security, assets like gold and, more importantly, Bitcoin could surge due to fears of global wartime inflation.
Bitcoin’s Response to Geopolitical Instabilities
Hayes observes that both gold and Bitcoin are experiencing upward momentum while long-end US Treasuries are being sold off. He argues that this movement is not simply a speculative response to potential ETF approvals but rather an indicator of an impending inflationary global wartime situation.
A crucial point Hayes raises is the possibility of the Federal Reserve no longer masking the true nature of the US Treasury market. If it reveals itself as a market influenced by political convenience rather than a free market, Hayes believes this revelation would be a turning point that propels Bitcoin and the broader crypto market into a bull phase.
Hot Take: Bitcoin’s Bullish Trend Continues
Since Hayes published “The Periphery,” Bitcoin has continued its bullish trend. The asset has seen a 2.6% increase in the past 24 hours and over 20% growth in the past week, currently trading at $34,890.
Featured image from iStock, Chart from TradingView
Hot Take: Bitcoin’s Bullish Trend Continues
Since Hayes published “The Periphery,” Bitcoin has continued its bullish trend. The asset has seen a 2.6% increase in the past 24 hours and over 20% growth in the past week, currently trading at $34,890.
Featured image from iStock, Chart from TradingView
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