Summary
- BitMEX founder Arthur Hayes is giving his outlook for Bitcoin (BTC) amid a market downturn.
- Hayes believes that Bitcoin will fall mildly by less than 5% from the current level.
- He also believes that increased fiat liquidity from the Fed’s moves to address banking pressures could be bullish for crypto and tech stocks.
Arthur Hayes’ Outlook on Bitcoin Amid an ‘Apocalyptic’ Mood
BitMEX founder and crypto veteran Arthur Hayes has outlined his outlook for Bitcoin (BTC) amid a market downturn in a new blog post. He believes that while forecasts are suggesting a drastic drop, he sees Bitcoin falling mildly by less than 5% from the current level.
Interest Income Earned on US Government Paper Could Benefit Crypto Assets
Hayes suggests that interest income earned on US government paper could benefit not only Bitcoin but other crypto assets as well. He notes that more investors may realize that the Federal Reserve and US Treasury are handing out billions per month to wealthy savers, which could lead some of this money into tech stocks and crypto.
Federal Reserve’s Moves Could Have Bullish Implications For Crypto And Tech Stocks
The BitMEX co-founder further says 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 points out that one of Bitcoin’s value propositions is its ability to act as an antidote for a broken, corrupt and parasitic fiat banking system – so as the banking system falters, it can strengthen Bitcoin’s value proposition. Additionally, he notes that with an increasing supply of fiat currency, this can increase Bitcoin’s value in fiat currency terms.