- Arthur Hayes, co-founder of BitMEX, announced on Tuesday that the decision by the US Federal Reserve to lower interest rates would rapidly propel Bitcoin towards $70,000.
- Many are trying to predict when the US Fed will stop raising or tapering interest rates, as the central bank has continued to raise rates even after the bank collapse in March.
- Currently, real interest rates (US 2-Year Treasury Yields minus nominal GDP growth) have turned positive, indicating an impending rally in Bitcoin.
Arthur Hayes says that Bitcoin may reach a new record with the FED’s interest rate decision: The FED has no choice but to reduce interest rates!
Arthur Hayes Makes a Bold Prediction for Bitcoin
Arthur Hayes, co-founder of BitMEX, announced on Tuesday that the decision by the US Federal Reserve to lower interest rates would rapidly propel Bitcoin towards $70,000. Hayes had previously expected Bitcoin to rise to $70,000 after March, but the Fed has raised interest rates three times since March. Fed Chairman Jerome Powell said they would rely on inflation and employment data to make their next decisions.
Macroeconomic analysts are trying to predict when the US Fed will stop raising or tapering interest rates, as the central bank has continued to raise rates even after the bank collapse in March. Meanwhile, the Fed’s balance sheet has shrunk during the debt ceiling crisis.
The US Federal Reserve is likely done with interest rate hikes because the job market is cooling, and the unemployment rate increased last month. Investors are also awaiting CPI and PPI data this week and will look to these figures to confirm the market direction.
When asked if Bitcoin is still rising after March, Arthur Hayes pointed out that Bitcoin’s price hasn’t reached $70,000 because people are more focused on Fed interest rates and are not comparing them to high nominal GDP growth in the US.
“The Fed’s only option seemed to be to lower interest rates, restore the health of the US banking system, and watch Bitcoin rapidly move towards $70,000.”
Rally Signals for Bitcoin Are Increasing
Hayes mentioned that during a presentation at a conference, he was asked if Bitcoin could still rise if the Fed continued to raise interest rates. Bitcoin has a positive relationship with Fed policy and other macro factors. Currently, real interest rates (US 2-Year Treasury Yields minus nominal GDP growth) have turned positive, indicating an impending rally in Bitcoin.
The BTC price is currently trading at around $26,190 and has increased by 2% in the last 24 hours. The price began to rise as buying activity by traders started, and trading volume increased by 100% in the last 24 hours.
