Crypto’s Red Alert: Is War Pushing Bitcoin To $1 Million? Arthur Hayes Weighs In
October 25 2023 - 4:00PM
NEWSBTC
Arthur Hayes, the former CEO of BitMEX, a prominent cryptocurrency
exchange, has recently shared his viewpoint, signaling a watershed
moment for Bitcoin (BTC). With a world grappling with heightened
geopolitical tensions and economic uncertainties, Hayes has delved
into how these macro factors can impact the trajectory of Bitcoin.
His recent blog post, “The Periphery,” casts light on the potential
future Bitcoin is hinting at. Related Reading: Bitcoin’s Surge
Shakes Up ETF World: Who’s Soaring And Who’s Crashing? Wartime
Economics And Bitcoin’s Rise Hayes underscores the geopolitical
risks posed by the United States’ growing involvement in two new
wars. According to the former CEO of BitMEX, the ripple effects of
such escalations could have vast implications for the global
economy. Tying this to the domestic financial scene, Hayes points
out the notable halt in interest rate hikes by the United States
Federal Reserve despite the looming inflation. Hayes identifies
this as a possible “bear steepener” for the economy when long-term
interest rates increase faster than short-term interest rates.
Hayes further elucidates the intricate relationship between banks’
structural hedging needs and the borrowing necessities of the US
war machine, which are both interlinked in the US Treasury market.
The former CEO poses a thought-provoking argument: if long-term US
Treasury bonds don’t offer the security investors traditionally
expect, where will the money flow? Hayes further postulates that
assets like gold, and more pivotally, Bitcoin, would surge, driven
by genuine fears of “global wartime inflation.” Bitcoin Response To
Geopolitical Instabilities Hayes observes that gold and Bitcoin are
witnessing an upward momentum, contrasting with a pronounced
selloff in “long-end US Treasuries.” The former CEO of BitMEX
stresses that this movement isn’t a speculative response to
potential spot Exchange-Traded Fund (ETF) approvals. Instead,
Bitcoin is a “barometer,” indicating an imminent “inflationary
global wartime situation.” One of the culminating points Hayes
touches upon in “The Periphery” is the possible eventuality where
the Federal Reserve would no longer mask the true nature of the US
Treasury market. According to Hayes, instead of portraying it as a
free market, it would reveal its genuine form: a “Potemkin
village” where the Federal Reserve sets interest levels based
on political convenience. As revealed by Hayes, this epiphany would
be a pivotal moment, propelling Bitcoin and the broader crypto
market into a full-fledged bull phase. The former CEO of
BitMEX further concludes: “This is the trigger,” suggesting a
strategic pivot from short-term US Treasury bills towards
cryptocurrency. Related Reading: From $35,000 To $500,000? The
Bitcoin Rollercoaster This Expert Sees Ahead When Hayes
published “The Periphery,” Bitcoin continued to move in a
bullish trend. The asset is up 2.6% in the past 24 hours and more
than 20% in the past week. BTC is trading for $34,890 at
the time of writing. Featured image from iStock, Chart from
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