Bitcoin billionaire and former BitMEX CEO Arthur Hayes shares his new prediction

May 04, 2024 12:56 AM AEST | By Investing

Bitcoin billionaire and former BitMEX CEO Arthur Hayes shares his new prediction

Bitcoin once again surpassed $61,000

Earlier this week, Bitcoin had dropped below $57,000 ahead of the Fed meeting. However, Fed Chairman Jerome Powell announced that, as many investors expected, interest rates would remain unchanged. BTC then traded sideways after the decision.

Bitcoin, which gained 5.6% in the last 24 hours, surpassed $61,000 for the first time since the end of April, according to Decrypt.

Arthur Hayes claimed that Bitcoin has reached its bottom, but he stated that he doesn't plan to buy more at the moment. Instead, he mentioned buying Solana and dog-themed coins.

According to Hayes, the good news is that developments such as the recent rescue operation by the U.S. Treasury, the Federal Reserve, and Republic First Bank indicate an increase in dollar liquidity. Just a month ago (before the latest Bitcoin halving), Hayes expressed skepticism about falling prices due to decreasing dollar liquidity.

$1 million claim

One of the main macroeconomic indicators highlighted by Hayes is that, according to the announcement made by the Federal Reserve in January, it is preparing to borrow about $41 billion more.

“That’s no bueno if you are a holder of Treasuries. There will be more supply, and tax receipts were underwhelming despite the roaring US economy and stonk markets. This hastens the pace at which the bond market throws a fit and ratchets long-end rates markedly higher. Yellen’s response to that will be some form of yield curve control, and that’s when Bitcoin begins its ascent for realz to $1 million.”

This article first appeared in Investing.com

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