• BitMEX founder and crypto veteran Arthur Hayes is detailing his outlook for Bitcoin (BTC) amid a market downturn.
• He believes that at some point, more investors will realize that the US Treasury is handing out billions per month to wealthy savers, which could lead to increased investments in tech stocks and crypto assets.
• Hayes also states that the Federal Reserve’s moves to address liquidity pressures facing US banks will have bullish implications for risk assets like crypto and tech stocks.
BitMEX Founder Arthur Hayes Details Path Forward for Bitcoin
BitMEX founder and crypto veteran Arthur Hayes is sharing his outlook for Bitcoin (BTC) during a market downturn. In a blog post, he forecasts Bitcoin falling mildly by less than 5% from its current level. He believes that more investors will do the math and realize that the US Treasury is handing out billions per month to wealthy savers, which could lead to increased investments in tech stocks and crypto assets.
Fed’s Moves Could Support Risk Assets
Hayes further states that the Federal Reserve’s moves to address liquidity pressures facing US banks will have bullish implications for risk assets like crypto and tech stocks. He believes that as long as the Fed is committed to its current path, both tech stocks and crypto should continue rising. Additionally, he notes that since Bitcoin has a finite supply, its value in fiat currency terms will increase as more fiat money enters the market.
Bitcoin Value Proposition Grows Stronger
The BitMEX co-founder also points out that one of Bitcoin’s value propositions is being an antidote for a broken, corrupt and parasitic fiat banking system — meaning that as this system falters, Bitcoin’s value proposition grows stronger. This could be an additional factor driving up demand for BTC over time as people flock away from traditional banking systems in search of an alternative financial asset with limited supplies available on the market.
Interest Income Could Flow Into Crypto
Hayes further suggests that interest income earned on US government paper could flow into both tech stocks and cryptocurrencies due to their finite supply levels — which would result in higher prices overall despite any short-term drops or corrections experienced within these markets. As such, he believes it’s likely we’ll see mild drops rather than drastic ones when looking at the potential performance of Bitcoin over the coming weeks or months ahead.
Conclusion
Overall, Arthur Hayes suggests there are several factors which could help support continued growth within both cryptocurrency markets as well as tech stock markets regardless of any short-term dips or corrections experienced across either industry — including interest income earned on US government paper flowing into these sectors due to their finite supply levels coupled with investors flocking away from traditional banking systems towards digital alternatives like bitcoin itself