Arthur Hayes, co-founder and former CEO of BitMEX exchange, said that the quantitative easing (QE) policies implemented by some governments have had an impact on Bitcoin. $63,645 and predicted that it would be beneficial for the cryptocurrency market in general. Hayes also explained how market participants could benefit from the expected price increase for BTC.
Bitcoin and Money Printing
Hayes stated that Bitcoin will benefit as world governments print more money to suppress volatility. In his latest blog post, he stated that fiat money will find its destination and will be directed towards Bitcoin and the cryptocurrency market.
He added that BTC is “the most technically sound way to offset the extravagance of the ruling elite in the modern digital world.”
Opportunities for Market Participants
Hayes’ comments come after the US Federal Reserve’s recent rate cuts and China’s stimulus package aimed at reviving the economy. The People’s Bank of China announced cuts to the reserve ratio and short-term interest rates and plans to inject liquidity into the country’s stocks.
Investment Strategies and Risks
Hayes said QE policies paint a positive picture for BTC and that this liquidity will flow into major cryptocurrencies, pushing their prices higher. He said investors should aim to acquire BTC at the best possible price. However, he warned that using leverage to buy Bitcoin could be dangerous and added that the asset should be held for the long term.
Hayes noted that those who adopt this strategy will outperform others despite their overall wealth falling. While it is believed that BTC and cryptocurrencies can create a haven for investors, Hayes emphasized that “there is nothing in the universe without risk.”
For now, Hayes expects Bitcoin to continue to do well as governments continue to ease monetary policy. He predicts the Fed will continue to lower interest rates and the banking system will produce more dollars.
Hayes said national governments in Europe will force banks to lend more to local companies, and China will follow suit with the Fed, and continue to print money. He said China’s President Xi Jinping will order banks to lend more, and that will be a real boom.
As monetary conditions begin to ease, Hayes predicts that Bitcoin and other cryptocurrencies will begin to increase in value. He also recommended that those holding fiat money invest it in the cryptocurrency market. “Bitcoin will be the asset that will benefit the most from a volatility supercycle,” he wrote in his article.
Hayes’ predictions show that governments’ money printing and interest rate reduction policies can have positive effects on Bitcoin and the cryptocurrency market. Investors can adopt a long-term and cautious approach by considering Hayes’ strategies. Following the fluctuations in the crypto market and acting in accordance with market trends can be beneficial for investors.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
