How Bitcoin Could Benefit from Increasing Interest Rates, According to Arthur Hayes

By Demian Crypter Sep 12, 202373Views

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Bucking Conventional Wisdom: Bitcoin and Interest Rates

In a recent blog post, macro-analyst Arthur Hayes challenges the traditional belief that Bitcoin’s value is affected by interest rates. Hayes argues that the massive amount of debt carried by the U.S. government will render conventional economic logic ineffective. Despite the Federal Reserve’s efforts to raise interest rates to combat inflation, Hayes believes that inflation may persist due to nominal GDP growth surpassing government bond yields. He points to the Atlanta Fed’s GDPNow forecast, which estimates a staggering 9.4% growth in nominal Q3 GDP compared to a 5% 2-year US Treasury yield. Hayes asserts that as the economy continues to outpace the government’s debt payments, bondholders may turn to riskier assets like Bitcoin for higher yields.

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Demian Crypter

Demian Crypter emerges as a true luminary in the cosmos of crypto analysis, research, and editorial prowess. With the precision of a watchmaker, Demian navigates the intricate mechanics of digital currencies, resonating harmoniously with curious minds across the spectrum. His innate ability to decode the most complex enigmas within the crypto tapestry seamlessly intertwines with his editorial artistry, transforming complexity into an eloquent symphony of understanding. Serving as both a guiding North Star for seasoned explorers and a radiant beacon for novices venturing into the crypto constellations, Demian's insights forge a compass for informed decision-making amidst the ever-evolving landscapes of cryptocurrencies. With the craftsmanship of a wordsmith, they weave a narrative that enriches the vibrant tableau of the crypto universe.