Fed will make Bitcoin jump to $200,000, says Arthur Hayes
Arthur Hayes, founder of BitMex, believes that Bitcoin can double in value, reaching the range of $200,000 per unit. The appreciation would be caused by the Fed's treasury bond buyback program, the American central bank.
Earlier this year, when Bitcoin was quoted above $100,000, the billionaire stated that the cryptocurrency would fall to $70,000. The currency hit a low of $74,500 in April, very close to his target.
In other words, although he is a big fan of Bitcoin, Hayes is more concerned about making money than defending a fixed narrative, unafraid to publish his analyses.
Arthur Hayes provides a new analysis on Bitcoin
Famous for his long and technical texts, Arthur Hayes published another essay on his blog this Tuesday (22) where he argues that the Fed's treasury bond buyback policy will have the same impacts as Quantitative Easing (QE).
"This allows the government to finance itself at affordable rates," explains Hayes. "The more debt is issued and bought not with private savings, but with leveraged funds created through the banking system, the greater the growth of the money supply."
"And then we know what the only asset we want to own is when the amount of fiat currency increases: Bitcoin."
Continuing, Hayes points to a decline in the MOVE index (Merrill Option Volatility Estimate), which measures the volatility of U.S. Treasury bonds.
While other analysts point out that the Bitcoin bull market is over, potentially causing the cryptocurrency to drop to $60,000, the billionaire believes that the cryptocurrency will have another direction.
"Bessent will buy old bonds by issuing new ones," explains Hayes, citing a case that happened in the third quarter of 2022. "None of this was what most investors knew and recognized as QE."
"Therefore, they let it pass and had to chase after the rally as soon as it was confirmed as a breakout."
Source: Livecoins
