Arthur Hayes, founder of BitMEX and seasoned cryptocurrency expert, presented his perspective on Bitcoin (BTC) during a market downturn.
In a recent publication in his blog, Hayes suggested that as Bitcoinas well as others cryptocurrencies can potentially profit from the interest accrued on US Treasuries.
Hayes, who co-founded BitMEX, opined that despite predictions pointing to a significant decline, he sees Bitcoin experiencing a modest decline of less than 5% from its current position.
He went on to say that he expects a realization among investors that the combined efforts of the Federal Reserve and the US Treasury are channeling significant sums to wealthy savers.
Since this capital needs a way to invest, some of it is likely to go to the technology sector as well as the cryptocurrency sphere. He emphasized that while the mainstream financial media may paint a dire picture of a sharp correction in cryptocurrency prices, there is a significant volume of capital seeking a destination in limited supply financial assets such as cryptocurrencies.
While some are predicting a return of Bitcoin below the $20,000 mark, Hayes takes a different view, expecting a swing phase around $25,000 at the start of the third quarter. He suggested that the sustainability of the cryptocurrency market during this period will be determined by the volume of interest income that seeks new investment avenues.
Hayes also explained that actions taken by the Federal Reserve to address liquidity challenges facing US banks could have positive implications for high-risk assets such as cryptocurrencies and technology stocks.
He emphasized one of Bitcoin’s core values, namely its position as an alternative to the vicious, corrupt and exploitative fiat banking system. As the traditional banking system struggles, BTC’s value proposition is expected to strengthen.
Hayes also noted that Bitcoin could benefit from the increased liquidity of fiat currencies. Wealthy people tend to prefer financial assets over material goods, which allows them to easily satisfy their desires. Due to the limited supply of Bitcoin, its value in fiat currencies is likely to rise as the supply of fiat currencies expands. This phenomenon has contributed to Bitcoin’s 18% rise since March.
As long as the Federal Reserve maintains its current trajectory, Hayes predicts continued upside for tech stocks and cryptocurrencies. He argues that outside of these categories, there are few options that offer higher returns than placing funds in the Federal Reserve, which carries an interest rate of nearly 6%.
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2023-08-26 16:01:55
#Bitcoin #assets #trajectory #Arthur #Hayes
