It’s a brand new world essayArthur Hayes has predicted a positive future for Bitcoins and other altcoins. The co-founder of BitMEX, Arthur Hayes, has outlined a bullish future for Bitcoin and altcoins.
When will Bitcoin Bull Run be back?
Hayes compares water quality in coffee brewing to liquidity. financial Markets, showing that liquidity is as important to health and mobility of a market’s participants as water is for brewing coffee. financial markets. Hayes pointed to the fact that investors often underestimate liquidity, and focus on other factors such as technological advances or regulatory change.
Hayes describes the concept of “fiscal dominance,” A situation in which the need for the government to fund itself overrides all other considerations of economics including inflation control. Hayes critiques specifically the US Treasury secretary Janet Yellen’s current policy, which focuses on generating economic growth despite inflationary effects.
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“During a period of fiscal dominance, the necessity to fund the state overrides any concerns the central bank may have about inflation,” Hayes explains. Hayes explains. “That means bank credit and, by extension, nominal GDP growth must be sustained at high levels even if it results in persistently higher than target inflation.”
Hayes made a direct link between Treasury’s actions and movements in the crypto markets. Treasury bills Bitcoin and T-bill price changes. He pointed out that by increasing T-bills, the Treasury effectively moves liquidity away from instruments such as the Reverse Repo Program, and into active uses. This has historically correlated with an increase in Bitcoin price.
As the RRP fell off its peak, Bitcoin rose from the bottom. You can clearly see that it is a tight connection. The Fed adds more liquidity as money leaves its balance sheet. […] Taking Bad Gurl Yellen at her word, it is clear that between now and the end of this year, $301bn in T-bills are expected to be issued. Bitcoin’s drop will be quickly reversed if this relationship is true. The yen strengthening has caused a drop in Bitcoin’s value. next stop for Bitcoin is $100,000″ Hayes speculates.
What is Altcoin season?
Hayes recommends that crypto traders pay attention to the fiscal and monetary policy, particularly the US Treasury’s actions, since these can often be precursors of significant market movement. Investors in crypto can benefit from tracking Treasury actions and T-bills. upcoming shifts Hayes explains that Hayes is interested in both the market’s liquidity and possible price changes.
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Shifting focus to the broader crypto market, Hayes also discusses the potential for an ‘alt szn’ or altcoin season, which he predicts will follow a rally in Bitcoin and Ethereum prices. “Shitcoins are higher beta Bitcoin crypto plays. But during this cycle, Bitcoin and now Ether have structural bids in the form of net inflows into US-listed exchange-traded funds (ETF). While Bitcoin and Ether have corrected since April, they escaped the carnage experienced in the shitcoin markets.”
Hayes, commenting on whether or not there will be a full-blown altcoin craze like previous cycles, assures us that it is coming. The altcoin period will not return until Bitcoin and Ether are gone. “decidedly break through $70,000 and $4,000, respectively.” Then he adds: “the combination of a dollar liquidity-inspired Bitcoin and Ether rally into year-end will create a strong foundation for the return of a sexy shitcoin soiree.”
Hayes is planning to make the most of US presidential elections. He believes that the bull run in crypto will end soon. “sideways-to-downward trajectory” In September, “The US election occurs in early November. Yellen will be at peak manipulation in October. There will be no better time for liquidity this year. Therefore, I shall sell into strength. I will not liquidate my entire crypto portfolio but take profits in my more speculative momentum trades,” He revealed.
Hayes anticipates that the market will undergo a larger adjustment after the US election, and following resolutions to raise US debt limits. “Once the US debt ceiling charade is over, liquidity will gush from the Treasury and possibly the Fed to get markets back on track. Then, the bull market will begin for realz. $1 million Bitcoin is still my base case.”
BTC was trading at $58,783 as of press time.
Charts from TradingView.com and YouTube.
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Source: www.newsbtc.com