Hayes: “For BTC to Reach $70,000…”

Arthur Hayes, former CEO of BitMEX, who attracted attention with his statements about Bitcoin and the cryptocurrency market, made evaluations about BTC in his new blog post. Stating that there is a close relationship between the FED’s interest policy and Bitcoin, Arthur Hayes stated that the FED’s start to reduce interest rates will quickly increase BTC to $ 70,000. At this point, Hayes was actually expecting the FED to stop increasing interest rates after the banking crisis in March and for BTC to reach $70,000. However, the FED has increased interest rates three times since March, focusing on reducing inflation.

Stating that some economists have been trying to predict when the FED will stop increasing interest rates since the FED started increasing interest rates, Hayes said that the FED made an unexpected move after the banking crisis in March.

After the banking crisis in March, many people, including me, believed that the FED would definitely not increase interest rates. Because the FED’s number one duty is to always protect banks and other financial institutions from going bankrupt. While we thought the FED’s only option was to lower interest rates, restore the US banking system to health, and eventually watch Bitcoin rapidly move towards $70,000, an unexpected move came from the FED. The FED has increased interest rates three times since March.

At this point, Arthur Hayes stated that the reason why Bitcoin could not reach $ 70,000 after March was that people focused on the FED increasing interest rates more and therefore could not focus on decreasing inflation. Hayes was asked if Bitcoin will rise even if the Fed continues to raise interest rates. Hayes replied:

Bitcoin has a positive correlation with Fed policy and other macro factors. Currently, real rates (US 2-Year Treasury Yields minus nominal GDP growth) are turning positive, signaling an impending rally in Bitcoin.

Finally, pointing out that Bitcoin is a logical alternative for people, the former CEO of BitMEX said:

BTC offers an attractive alternative to traditional banking and investment systems with its limited supply of 21 million and fast payment network. Banks are now facing unprecedented competition and buying Bitcoin is becoming a logical choice for people.

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