Arthur Hayes, one of the most respected analysts in the industry, believes now is the time to invest in Bitcoin. In a long text of 27 minutes, the founder of BitMex explains what could be the ‘trigger’ that will cause the next bull run.
The basis of the billionaire thesis is again the Inflation of the US dollar. As a highlight, Hayes points out that the US continues to spend money on wars, sending $60 billion to Ukraine, $14 billion to Israel, $14 billion to stop drug trafficking and $10 billion in humanitarian aid.
In total, the amount is US$105 billion (R$526 billion).
“A billion here, a billion there, and soon you’ll be talking about real money.”said Hayes. “The bond market heard Biden’s speech, saw his budget and got worried. The next morning, revenues soared.”
“If you are a holder [dos títulos] from the U.S. Treasury Department over the longer term, the most concerning fact is that the U.S. government does not believe that overspending is happening.”
Therefore, the founder of BitMex believes that the market is starting to worry about such spending, as they are already looking for assets without political ties, such as gold and Bitcoin.
Arthur Hayes thinks it’s time to buy Bitcoin
In other texts, Arthur Hayes has already emphasized that the Fed’s interest rate increase will lead to more inflation in the future. His theory is that the government will have to inject more capital into the market to service its debts, in other words: a snowball.
This Tuesday (24), the billionaire argued that the market is also concerned about government spending, considering assets such as gold and Bitcoin as a safe haven.
“Gold and Bitcoin yield nothing. So if they are rising while US Treasury yields are skyrocketing, that tells me that both safe havens are discounting a future of more government spending and more inflation.”
Many believe Bitcoin’s recent rise is linked to BlackRock’s ETF filing. Arthur Hayes is not one of those people. According to the billionaire, the reason for the appreciation is related to the US economy.
“Immediately after Biden’s speech, Bitcoin rises – along with gold – against the backdrop of aggressive selling of long-term US government bonds”said Hayes. “This is not speculation about the approval of an ETF – this is Bitcoin ignoring a future highly inflationary global world war situation.”
In October, gold rose 6.93% and approached $2,000. Bitcoin posted a 28.7% gain during the same period, operating above $34,500.
“And at the end of the game, if interest rates get too high, the Fed will put an end to all the pretenses the market has [de títulos] of the US Treasury Department is a free market”predicts Hayes, believing that the US will put a fixed rate on bond yields.
“Once everyone realizes what game we are playing, the Bitcoin and cryptocurrency bull market will be in full swing. This is the trigger, and it’s time to get out of short-term US Treasuries and into cryptocurrencies.”
According to the billionaire, Bitcoin will be the first to benefit from this thesis, followed by Ethereum and then his “beloved shitcoins.” At the beginning of the month, Hayes unveiled a cryptocurrency that could ride the wave of artificial intelligence.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
