Bitcoin on the Verge of Surge, Says Arthur Hayes, Citing Inflation Risks
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In a recent blog post titled “The Periphery,” former BitMEX CEO Arthur Hayes has stirred the cryptocurrency world by suggesting that Bitcoin (BTC) is on the brink of a major price surge. Hayes argues that the cryptocurrency is sending clear signals about an impending “global wartime inflation,” which, he believes, could send Bitcoin’s price soaring to new highs. This bold prediction is based on an intricate interplay of factors involving inflation, global conflicts, and financial market dynamics. The bond vigilantes are yelling “down with the dollar.” Look out for my spicy essay “The Periphery” dropping this week where I discuss the Hamas vs. Israel war, the US Treasury market, and $BTC. YCC = $1mm $BTC is in full effect. Yachtzee!!! pic.twitter.com/1ABcW1esaf — Arthur Hayes (@CryptoHayes) October 23, 2023 The Safe Haven in Times of Uncertainty Hayes begins his argument by pointing to the geopolitical landscape, particularly the United States’ involvement in two new wars. According to him, this increases the risk of an escalation of global conflicts. Simultaneously, the U.S. Federal Reserve is grappling with persistent inflation but has halted interest rate hikes, leaving the economy in what he calls a “bear steepener” phase. “The structural hedging needs of banks and the borrowing needs of the US war machine reflexively feed on one another in the US Treasury market,” Hayes writes in his blog post. He suggests that this complex interaction is creating an environment where long-term U.S. Treasury bonds no longer offer safety for investors, prompting them to seek alternative assets like gold and, most importantly, Bitcoin. The recent price movement of Bitcoin seems to confirm Hayes’s thesis. BTC has surged by 20% in a week, a significant uptick that followed the U.S. President Joe Biden’s address to the nation regarding the wars in Ukraine and Israel. “Directly after…
Filed under: News - @ October 25, 2023 2:20 pm