Bitcoin Bull Market to Resume with One Catalyst, Says Arthur Hayes
According to BitMEX founder Arthur Hayes, the bull market for Bitcoin (BTC) will reignite after a specific event takes place. He believes that the Federal Reserve’s decision to start printing money again will cause Bitcoin to soar. Hayes shares his prediction with his followers on the social media platform X. He points out a concerning pattern in the bond market as an indicator that the Fed will need to intervene and support the US economy. This pattern, known as the “bear steepener,” occurs when long-term bond interest rates rise faster than short-term rates. Typically, this signals a bearish outlook for stocks and risk assets.
Hayes explains that as the bear steepener rises, more people will face financial difficulties, leading to a recognition that the only solution is money printing to save government bond markets. This realization will ultimately drive the return of the crypto bull market. According to Hayes, factors such as the rising 2s30s curve and the Federal Reserve’s hawkishness are contributing to an inflection point in the US economy. The series of interest rate hikes initiated by the Federal Reserve in March 2022 had previously impacted liquidity in financial markets, negatively affecting Bitcoin and other risk-on assets.
Hot Take: Bitcoin Bull Market Awaits Fed Money Printing
Arthur Hayes, founder of BitMEX, predicts that Bitcoin’s bull market will resume once a specific catalyst occurs – the Federal Reserve’s decision to print money again. He points out a concerning pattern in the bond market called the “bear steepener” as an indicator that the Fed will need to intervene and support the US economy. As long-term bond interest rates rise faster than short-term rates, stocks and risk assets face a bearish outlook. According to Hayes, this pattern will lead to a recognition that money printing is the only way to save government bond markets, ultimately reigniting the crypto bull market.
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