Bitcoin (BTC) is facing a “trigger” moment that could see its price remain at the $1 million level, according to a household name.
In an article titled “surrounding area” On October 24, Arthur Hayes, the former CEO of cryptocurrency exchange BitMEX, said that Bitcoin is already sending a warning to the market about the future.
“Global wartime inflation” drives Bitcoin, gold prices up
Hayes believes that as the United States becomes increasingly involved in two new wars, the risk of global escalation is increasing.
The timing is obvious – the Fed is facing continued inflation, but has stopped raising interest rates, and the so-called “bear market steepening period” is approaching.
“The structural hedging needs of banks and the borrowing needs of the U.S. war machine interact instinctively in the U.S. Treasury market,” he wrote.
“If long-term U.S. Treasuries fail to provide investors with safety, then their funds will look for alternatives. Gold, and most importantly Bitcoin, will start to rise due to real concerns about global wartime inflation.”
The writing is on the wall. BTC/USD rises 15% this week, gains follow U.S. President Biden address the nation About the war between Ukraine and Israel.
Now, the blog post reiterates, “Bitcoin, along with gold, rebounded on the back of a sharp sell-off in long-dated U.S. Treasuries following Biden’s speech.”
“This is not speculation about ETF approval – this is Bitcoin discounting a future global war scenario with very high inflation,” it continued.
Hayes is known for his predictions about how the global economy will fare in the post-COVID-19 and subsequent era of inflation.
The $1 million BTC price tag is in play as part of a Bitcoin ripple effect – something that was repeated on social media this week. This will be the result of so-called yield curve control (YCC) – the ultimate move towards a controlled economy that has begun to rear its head in Japan.
Bond vigilantes chanted “Devaluation of the dollar.”
Keep an eye out for my spicy article “On the Periphery” this week, which discusses Hamas’ war with Israel, the U.S. Treasury market, and Bitcoin USD.
YCC = $1mm Bitcoin USD is fully effective.
yacht! ! ! pic.twitter.com/1ABcW1esaf
— Arthur Hayes (@CryptoHayes) October 23, 2023
“When yields get too high, the end result is that the Fed ends any pretense that the U.S. Treasury market is a free market. Instead, it becomes what it really is: a Potemkin village with the Fed fixing interest rates at politically expedient levels. Level,” “Periphery” also concluded.
“Once everyone realizes the game we are playing, the Bitcoin and cryptocurrency bull market will be in full swing. That’s the trigger and it’s time to start moving away from short-term U.S. Treasuries and into cryptocurrencies.”
Dalio warns of ‘costly’ choices
As Cointelegraph reported, macro concerns have become more intense this quarter due to an increase in wars.
Related: BTC Price Nears 2023 Highs – 5 Things to Know About Bitcoin This Week
Billionaire investor Ray Dalio, founder of Bridgewater Associates, the world’s largest hedge fund, recently said that the probability of “World War III” is 50%.
“I hope that the leaders of the great powers will have the wisdom to step back from the brink, although they must be prepared to be strong enough to successfully win a hot war,” he wrote in a statement. LinkedIn Post October 12th.
“I think that for this thing to go smoothly, it will not only test the restraint of the participants, but also the alliances that can easily win over non-belligerents. Because in war, alliances and help allies.” These brutal wars are always costly. , and increases the risk of full-scale involvement in war. This is how local wars spread into world wars. “
Coupled with the heated discussion about ETF approval, Bitcoin rose 27% in October this year and is up more than 100% year-to-date. data From monitoring resource CoinGlass.
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should do their own research when making decisions.
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