BitMEX co-founder Arthur Hayes predicts that Bitcoin’s price could rapidly increase and potentially reach $70,000 following the recent decision by the United States Federal Reserve (Fed) to lower interest rates. Hayes had previously anticipated this price level, but the Fed had implemented three interest rate hikes between March and the present time.
The failure to reach the $70,000 target can be attributed to a focus on the nominal Federal Reserve interest rate rather than the real interest rate, which takes into account the United States’ high nominal GDP growth. According to Hayes, Bitcoin‘s price performance is influenced by the market’s perception of real interest rates, considering factors such as inflation and other economic indicators.
In his recent blog post titled “Are we there yet,” Hayes explains that conventional wisdom suggests that when interest rates rise, the prices of risky financial assets like Bitcoin should decline. However, he points out that investors’ search for positive real yields has ignited a Bitcoin bull market since March 10th, resulting in a nearly 29% increase in the flagship cryptocurrency’s value.
Even though Bitcoin has tested the $30,000 level and faced multiple rejections, it continues to trade well above its pre-BTFP bailout level of $20,000. Hayes emphasizes that unconventional monetary policies, rising government debt, and the evolving economic landscape contribute to Bitcoin’s appeal as an alternative to the flawed and corrupt traditional banking system.
Hayes believes that buying Bitcoin and withdrawing it to one’s own wallet, where they hold the private keys, offers a way to escape the government’s control over finances. He states, “Escape only comes through buying Bitcoin and withdrawing it to your own wallet, where you hold the private keys. It is logical to assume the market will tire of handing profit to the government when there are financial escape hatches like Bitcoin readily available.”
These insights from Arthur Hayes shed light on Bitcoin’s potential for growth and its role as a hedge against a flawed financial system. The changing economic landscape and widespread adoption of unconventional monetary policies further contribute to the cryptocurrency’s appeal.
– [Blog post by Arthur Hayes](https://cryptohayes.substack.com/p/are-we-there-yet)
– [Bitcoin’s appeal as an alternative to traditional banking system](https://cryptopotato.com/bitmexs-arthur-hayes-bitcoin-is-antidote-for-flawed-corrupt-parasitic-fiat-banking-system/)
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