Arthur Hayes Predicts Bitcoin Upturn Despite Fed Rate Hike and Temporary Dip
CryptoNewsTerminal Staff03 Sep, 2024
Arthur Hayes Predicts Bitcoin Upturn Despite Fed Rate Hike and Temporary Dip
Arthur Hayes, co-founder of BitMEX, believes Bitcoin (BTC) will eventually rally despite an expected short-term dip if the Federal Reserve (Fed) cuts interest rates. In a recent Medium post, Hayes analyzed the cryptocurrency market's sensitivity to monetary policy. According to Hayes, "the uncertain monetary policy of the Federal Reserve is one of the major factors driving the cryptocurrency market." He explained that Bitcoin's price reacts most sensitively to dollar liquidity. While high inflation is primarily caused by the U.S. government's fiscal spending, it also necessitates adjustments in the Fed's monetary policy. However, Hayes predicts that the cryptocurrency market could face a new upturn if the U.S. Treasury issues more short-term Treasury notes and adjusts its fiscal policy. Even if the Fed initiates interest rate cuts, Bitcoin's price may initially fall in the short term. Hayes believes that in the long run, the cryptocurrency bull market will resume.
