Key Takeaways
- Arthur Hayes links Fed rate cuts to a potential Bitcoin rally.
- Hayes highlights risks from the Japanese yen carry trade unwinding.
- Bitcoin may hit $100,000 if liquidity continues to expand.
Arthur Hayes, co-founder of BitMEX, believes that the Federal Reserve’s recent monetary policies could create a short-term economic “sugar high,” with significant ripple effects for Bitcoin.
Hayes points to the Fed’s rate cuts as a potential trigger for the unwinding of the Japanese yen carry trade, which could strengthen the yen and cause global market turbulence.
In his Medium article, Hayes explains that the yen’s appreciation would force central banks to inject more liquidity into the economy. This increase in liquidity, or “real food” as Hayes calls it, could boost Bitcoin’s value due to its finite supply.
Hayes emphasizes the importance of the Federal Reserve continuing to expand the money supply. He also noted that Bitcoin must surpass $70,000 for the next phase of the bull market to begin.
Nansen
Aurelie Barthere, an analyst at Nansen, commented that Fed rate cuts are bullish for Bitcoin but warned that a correction in equities could negatively impact BTC prices.
Hayes predicts that if the U.S. Treasury issues $301 billion in T-bills by the end of the year, Bitcoin could quickly recover from any market corrections and potentially reach $100,000.
