Arthur Hayes, co-founder and former CEO of BitMEX, said that Bitcoin (BTC) has been in a bull market for the past 6 months or so, and the market has not yet reacted, but it will be in about 6 to 12 months. reaction.
In a keynote speech at Korea Blockchain Week on Sept. 5, Hayes argued that the bitcoin bull run began on March 10, the day Silicon Valley Bank (SVB) was taken over by the FDIC.
Silvergate Bank was in liquidation two days before SVB took over on March 8. Two days later, on March 12, Signature Bank was forced to close by New York regulators.
In response, to head off a further possible collapse, the Fed created the Bank Term Funding Program (BTFP)—providing bank loans for up to a year in exchange for banks posting “qualifying assets” as collateral.
“Essentially, what the (Fed) did was prop up the entire banking system and say, ‘Give me your underwater shit bonds, please, and I’ll give you new dollars,'” Hayes said.
“I and the rest of the market see this rightly because they’re basically acknowledging that this problem – the structure of the banking system – is their fault, and one of the ways to fix it is: print more money .”
Since then, he said, the price of bitcoin has risen — currently about 26 percent — which is why he claims the bull market started that day.
“We’ve basically thrown away the whole semblance that we care about the value of the dollar and the value of any fiat currency.”
This, Hayes claims, prompts traders to consider fixed-supply assets like Bitcoin.
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However, the rest of the market has yet to respond, but he gave a six to 12 month timeframe.
Even if the Federal Reserve and other central banks continue to raise interest rates to achieve economic austerity, or “print more money,” Hayes said Bitcoin will still do well.
“In both cases, whether the Fed raises or lowers rates, we as the cryptocurrency industry are well-positioned,” he said.
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