Arthur Hayes Predicts Bitcoin Will Surge Due to Fed Policy Changes
Arthur Hayes, co-founder of BitMEX, predicts that Bitcoin will soon rally due to Federal Reserve Chair Jerome Powell’s comments indicating a transition from quantitative tightening to quantitative easing. Hayes forecasts that Bitcoin could reach $250,000 by year-end if the Fed implements these changes. Currently, Bitcoin is priced at $82,702, a 3.2% drop in the last 24 hours.
Arthur Hayes, co-founder of BitMEX, anticipates that Bitcoin (BTC) will experience significant upward momentum due to recent statements from Federal Reserve Chair Jerome Powell regarding monetary policy. In a recent blog post, Hayes indicates that these comments suggest an impending increase in market liquidity, which has historically been linked to substantial Bitcoin rallies.
Hayes expects the Federal Reserve to shift from a stance of quantitative tightening (QT) to quantitative easing (QE), initiating this transition with adjustments in policies concerning US Treasury bonds. QE refers to the strategy employed by central banks that involves the creation of new money to purchase financial assets, consequently aiming to stimulate economic activity through increased spending and investment.
“I am confident QT, at least regarding Treasuries, will stop in the short to medium term,” Hayes remarked. He further noted that while the Federal Reserve might retain a runoff of mortgage-backed securities, it will transition to net buying Treasuries, effectively implementing a form of Treasury QE. He believes that once this policy change is enacted, Bitcoin will see significant price increases. Furthermore, the anticipated exemption of the Supplementary Leverage Ratio (SLR) for banks could also act as a catalyst for Bitcoin’s rise.
Hayes is optimistic that Bitcoin could achieve a price target of $250,000 by the end of the year if the Federal Reserve successfully transitions to QE. He stated, “If my analysis of the Fed’s major pivot from QT to QE for Treasuries is correct, then Bitcoin hit a local low of $76,500 last month, and now we begin the ascent to $250,000 by year-end.” Even amidst potential declines in US stock markets, he remains confident that Bitcoin’s upward trajectory will continue.
Currently, Bitcoin is trading at $82,702, reflecting a decrease of 3.2% over the past 24 hours. Readers are encouraged to stay informed and exercise diligence when considering investments, as The Daily Hodl emphasizes the importance of conducting thorough research before engaging in any high-risk investments in cryptocurrencies.
In conclusion, Arthur Hayes asserts that the potential shift in Federal Reserve policy from QT to QE may catalyze a significant increase in Bitcoin’s value. He projects that Bitcoin might reach $250,000 by year-end, following a recent price low. Continued liquidity expansion and supportive monetary policies are highlighted as contributing factors to this anticipated rise in Bitcoin’s value, despite ongoing challenges in the broader market.
Original Source: dailyhodl.com
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