BD VENTURES
--
Bitcoin could reach $250,000 this year
Arthur Hayes - Former CEO of BitMEX, has made a bold prediction: Bitcoin could hit $250,000 by the end of this year. According to him, a fundamental shift in the policy of the U.S. Federal Reserve (Fed) will trigger a massive wave of liquidity flooding into the financial markets, paving the way for Bitcoin to surge.
Arthur Hayes believes the Fed has abandoned its quantitative tightening (QT) policy and is gradually shifting towards quantitative easing (QE) for U.S. government Treasury bonds. This will create an excess of fiat currency in the economy, leading investors to seek scarce assets like Bitcoin to preserve value.
“QT Twist” and its impact on Bitcoin
The core of Arthur Hayes's argument is a policy move he calls “QT Twist” – a strategy whereby the Fed slows down the pace of shrinking its balance sheet while reinvesting the funds collected from mortgage-backed securities (MBS) into U.S. Treasury bonds. According to Hayes, this is essentially a form of stealth QE that helps inject hundreds of billions of USD into the financial system.
He estimates that the Fed could buy up to $420 billion in government bonds each year while reducing the scale of QT for Treasury bonds from $25 billion to only $5 billion per month. Thus, the liquidity injected into the economy would increase by an additional $240 billion per year, weakening the USD and pushing investors towards Bitcoin as a hedge against inflation.
#btc #bitcoin
Arthur Hayes - Former CEO of BitMEX, has made a bold prediction: Bitcoin could hit $250,000 by the end of this year. According to him, a fundamental shift in the policy of the U.S. Federal Reserve (Fed) will trigger a massive wave of liquidity flooding into the financial markets, paving the way for Bitcoin to surge.
Arthur Hayes believes the Fed has abandoned its quantitative tightening (QT) policy and is gradually shifting towards quantitative easing (QE) for U.S. government Treasury bonds. This will create an excess of fiat currency in the economy, leading investors to seek scarce assets like Bitcoin to preserve value.
“QT Twist” and its impact on Bitcoin
The core of Arthur Hayes's argument is a policy move he calls “QT Twist” – a strategy whereby the Fed slows down the pace of shrinking its balance sheet while reinvesting the funds collected from mortgage-backed securities (MBS) into U.S. Treasury bonds. According to Hayes, this is essentially a form of stealth QE that helps inject hundreds of billions of USD into the financial system.
He estimates that the Fed could buy up to $420 billion in government bonds each year while reducing the scale of QT for Treasury bonds from $25 billion to only $5 billion per month. Thus, the liquidity injected into the economy would increase by an additional $240 billion per year, weakening the USD and pushing investors towards Bitcoin as a hedge against inflation.
#btc #bitcoin
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
