Bitcoin Expected to Reach New Peaks Amid Economic Transformations, States BitMEX Co-Founder
In an intriguing forecast, Arthur Hayes, one of the minds behind BitMEX, has suggested a potential surge for Bitcoin (BTC) to unprecedented levels, propelled by the current economic strategies in the United States under President Donald Trump, particularly in relation to tariffs.
Hayes shared his observations with a large audience on the social media platform X, shedding light on the potential outcomes of a probable U.S. treasury sell-off and the subsequent uptick in 10-year bond yields. He hypothesizes that these financial shifts could trigger an expansion in the money supply, a factor historically linked to substantial upswings in Bitcoin’s valuation.
“Get ready for action. If this trend persists, we can expect further policy reactions over the weekend. BTC is on the verge of entering a phase of consistent growth,” Hayes declared confidently, indicating his strong belief in Bitcoin’s bullish path.
In his evaluation, Hayes also noted the continuous devaluation of the Chinese yuan, a situation attributed to the ongoing efforts of central banks to ease monetary policies. He suggests that this development might lead investors to divert their resources into Bitcoin as a hedge. “No agreements in sight. PBOC (People’s Bank of China) maintains a gradual yuan devaluation. Things are about to heat up. Fortunately, BTC thrives on currency printing and the weakening of the Chinese yuan,” he observed.
Moreover, Hayes foresees the possibility of banks receiving an exemption from the Supplementary Leverage Ratio (SLR)—a proposal endorsed by JPMorgan CEO Jamie Dimon. This exemption could allow banks to hold a larger quantity of Treasuries without increasing their capital requirements, thus enhancing liquidity for lending. “Jamie Dimon’s wish is being granted. An SLR exemption is the key to propelling BTC to new heights,” Hayes affirmed.
According to the most recent data, Bitcoin is currently valued at $83,343, reflecting a 4.9% increase within the last 24 hours.
Wrap-Up
Arthur Hayes’ forecasts encapsulate a potential shift in the economic landscape that could significantly impact the trajectory of Bitcoin. With elements such as U.S. treasury movements, currency devaluation in China, and proposed reforms in the banking sector converging, the cryptocurrency arena is prepared for intriguing transformations. As events unfold, investors are advised to stay alert and conduct thorough research before navigating the dynamic realm of digital currencies.
