Why This Crypto Exchange Founder Believes Bitcoin Can Still Rise 150% From Here
September 14 2023 - 6:00AM
NEWSBTC
The price of Bitcoin has fluctuated over the past month, but BitMEX
co-founder Arthur Hayes is the latest crypto expert to make a
bullish forecast for the asset. According to the former CEO of the
cryptocurrency exchange BitMEX, Bitcoin could reach $70,000, and
the only reason the asset is not yet at this price is because
investors are fixated on the Fed’s nominal rate. Bitcoin Can Still
Rise 150% Various predictions have come in regarding Bitcoin, with
some being more bullish than others. As for Hayes, he made his case
regarding BTC in his Crypto Trader Digest blog post in light of
various actions by the US Federal Reserve to curb inflation.
Related Reading: This Latest Move Suggests SEC Lawsuit Against
Ripple Is Pushing The Crypto Firm Outside The US Since March 2022,
the Fed has raised interest rates multiple times, causing many
investors like Hayes to reconsider their predictions regarding the
outlook of Bitcoin. What happens if the Fed keeps raising rates?
Can the $BTC bull market gain steam? “Are We There Yet?” is an
essay exploring that question.https://t.co/OGkVQreIBg
pic.twitter.com/FTYR3HBq1a — Arthur Hayes (@CryptoHayes) September
11, 2023 In the blog post, Hayes shared several metrics relating to
the US treasury yield and GDP growth. Hayes began adjusting his
forecasts by disputing the widely held belief that BTC’s value is
negatively correlated with rising interest rates. A new
outlook shows that the government’s spending rates and the current
growth of GDP have driven down the actual treasury yield on 5%
government bonds closer to 4%, making risky assets like BTC and
stocks still attractive. Hayes believes the Fed will be able
to continue down this path of raising rates, and investors’ search
for positive real yields in response to this has translated into a
bullish market for Bitcoin which began in March 2023.
However, although Bitcoin is up by close to 29% since then, most of
the market is still yet to catch on as everyone is focused on the
nominal Fed rate and not the real rate. “The reason why we aren’t
at $70,000 is that everyone is focused on the nominal Fed rate, and
not on the real rate when compared to the U.S.’s eye-poppingly high
nominal GDP growth.” BTC price trending above $26,300 | Source:
BTCUSD on Tradingview.com BTC Price To $70,000? While speaking at
the Korea Blockchain Week, Hayes mentioned that the next Bitcoin
bull market started on March 10, the day the Federal Deposit
Insurance Corporation (FDIC) took over Silicon Valley Bank
(SVB). Hayes has actually made similar predictions regarding
Bitcoin. Back in March 2020, the pundit made a prediction Bitcoin
could rise from $8,000 and reach $20,000 by the end of the year.
BTC’s price would later close the year 2020 at around
$27,000. Related Reading: SEC Boss Gary Gensler Completes
Senate Hearing: Here’s What Crypto Investors Should Know The BitMEX
co-founder has previously expressed his discomfort on Spot Bitcoin
ETF, from investment companies like BlackRock, calling them “crypto
gatekeepers” who are only looking to balance their deposit base.
However, Hayes believes a catchup by the market would Bitcoin
survive more interest rate raise from Fed to skyrocket more than
150% from its current level by early 2024. At the time of
writing, Bitcoin is trading at $26,320 and is up by 2.27% in a
seven-day timeframe. Featured image from Breet, chart from
Tradingview.com
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