BitMEX co-founder Arthur Hayes is bullish on Bitcoin, predicting that upcoming interest rate cuts by the Federal Reserve will send the cryptocurrency soaring.
Fed Rate Cuts: A Sugar High for Bitcoin?
Hayes believes that comments made by Fed Chair Jerome Powell last week signal that the Fed is preparing to cut rates, even though the economy is still relatively strong. He thinks this is a risky move, similar to a “sugar high” that could lead to a bigger problem down the line.
Printing Money: A Recipe for Inflation?
Hayes argues that if the Fed cuts rates now, they’ll be forced to cut them even more aggressively if a recession hits. This would involve “ramping up the money printer,” leading to a significant increase in the money supply. While this could be bad for some businesses, Hayes believes it would be great for Bitcoin.
Why Bitcoin Benefits from Inflation
According to Hayes, Bitcoin’s limited supply makes it a good hedge against inflation. As the value of the dollar decreases, the value of Bitcoin could rise, leading to a potential “trip at lightspeed 2 Da Moon!”
Disclaimer: This article is for informational purposes only and should not be considered investment advice. Always do your own research before making any investment decisions.
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