BitMEX Co-founder Forecasts Bitcoin Surge Toward $70,000 Amidst 'Stealth Money Printing

Arthur Hayes, former CEO of BitMEX and current manager of Maelstrom, a family office, predicts a resurgence in Bitcoin's value, aiming for a return to $60,000 and then maintaining a range between $60,000 and $70,000 until August.

In a recent blog post, Hayes suggests that the gradual injection of billions of dollars into the economy each month will mitigate downward price pressures, challenging the conventional wisdom of seasonal market patterns epitomized by "buy in May, go away."

Hayes contends that recent policy shifts by the Federal Reserve and the U.S. Treasury represent covert forms of monetary expansion. While he anticipates a delayed reaction from the crypto market, he foresees prices stabilizing, consolidating, and gradually ascending.

Following a dip to $56,500 on Wednesday—a 23% decrease from its peak of $73,836 on March 14—Bitcoin is currently trading at $59,568.

Hayes had previously anticipated a significant market correction in March, citing intersecting macroeconomic factors. Reflecting on this, he notes that events such as U.S. tax season, uncertainties surrounding Federal Reserve actions, the Bitcoin halving's "sell the news" impact, and a slowdown in U.S. Bitcoin ETF asset under management growth, combined to facilitate a necessary market reset.

Improved Liquidity Outlook

Hayes elaborates on his reasoning, highlighting the Fed's decision this week to reduce the rate of quantitative tightening from $95 billion to $60 billion monthly, effectively injecting an additional $35 billion per month into the economy.

He underscores the stimulative effect of relatively "high" interest rates, necessitating interest payments to affluent individuals, coupled with a moderation in quantitative tightening.

Additionally, Hayes draws attention to the U.S. Treasury's recent quarterly refunding announcement, emphasizing increased borrowing and debt issuance coupled with reductions in the Treasury General Account and heightened issuance of short-dated bills—all contributing positively to liquidity.

Hayes also mentions recent bank closures, such as Republic First Bank, acquired by Fulton Bank with substantial assistance from the Federal Deposit Insurance Corporation (FDIC). He suggests that, ahead of the U.S. election in November, the government may guarantee all deposits in the banking system, effectively injecting trillions into circulation.

Disclaimer: This article is provided for informational purposes only and does not constitute legal, tax, investment, financial, or other advice. The Block is an independent media outlet. As of November 2023, Foresight Ventures is a majority investor in The Block.

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