• Arthur Hayes, founder of BitMEX exchange, predicts a Bitcoin (BTC) bull market ahead due to Federal Reserve’s rate hike.
• He believes the fireworks and real Bitcoin bull market will begin in late third and early fourth quarter of this year.
• He says wealthy asset holders will buy risk assets such as gold, Bitcoin, AI tech stocks with the proceeds from interest payments received from the Fed.
BitMEX Founder Predicts a Bitcoin Bull Market
Arthur Hayes, founder of BitMEX exchange, is predicting a bullish path for Bitcoin (BTC) due to the Federal Reserve’s rate hike. In an essay he wrote, Hayes claims that by printing money to pay interest on reserve balances it increases liquidity in the system which will likely cause wealthy asset holders to purchase risk assets such as gold, Bitcoin or AI tech stocks with the proceeds from interest payments received from the Fed. According to him, he believes that “the fireworks and real Bitcoin bull market will begin in late third and early fourth quarter of this year.”
Fed Rate Hike Catalyzes Bull Run
The Federal Reserve’s rate hike has catalyzed a potential bull run for Bitcoin (BTC). By printing money to pay interest on reserve balances it increases liquidity in the system. This stimulus program allows wealthy asset holders to purchase risk assets with their extra funds such as gold, BTC or AI tech stocks. Hayes believes that this increase in investment could be seen around late third/early fourth quarter of this year when there is an influx of wealth entering into these markets.
Reduced Crypto Market Activity
Despite current reduced crypto market activity due to summer months which “always disappoint” according to Hayes; he still expects Bitcoin prices to remain steady until more money trickles into global risk asset markets which will form a strong base of support for BTC prices moving forward. As more people understand what is happening with money printed by governments and handed out as interests; they can start investing into these markets where ‘Bitcoin goes boom!’
Increase Allocation To Bitcoin
Hayes states that he plans on using this time during summer months where trading volumes are low to slowly increase his allocation towards BTC after US Treasury’s General Account is replenished. This would result in increased investments into global risk asset markets which are comprised of BTC among other things like gold or AI tech stocks; causing prices within those markets including BTC prices to soar due to increased demand.
To conclude; Arthur Hayes predicts that if government continues printing money and handing out interests then it could lead us into a potential bull run beginning around late third/early fourth quarter this year when more wealth enters these global risk asset markets including BTC; leading its prices higher due to increased demand within those markets.