Hayes has always maintained an optimistic outlook on Bitcoin and remains one of the market analysts who believes that the best is still to come for the leading cryptocurrency. He believes we will see a value of $1 million for the coin in the long term.
Arthur Hayes, former CEO of bitmex Recently it has been suggested blog post Titled “The Periphery,” a $1 million Bitcoin (BTC) price is still attainable, despite inflation and the ongoing wars in Israel and Ukraine.
Arthur Hayes on geopolitical tensions and Bitcoin’s reaction
Hayes begins by pointing to the global stage, where the United States finds itself embroiled in two new conflicts, one in Ukraine and the other in Israel. Hayes argues that these geopolitical developments are increasing the risks to further global growth, and Bitcoin, in its unique way, is warning financial markets about the implications of this volatility.
The timing of these events is truly remarkable. The Federal Reserve of the United States continues to deal with inflation, but has decided to stop raising interest rates. Also, the impending “recessionary situation” for the economy is causing concern. According to Hayes, this is a scenario in which the structural hedging needs of banks and the borrowing needs of the US military-industrial complex interact in the US Treasury market.
“The writing is already on the wall,” writes Hayes, noting that the value of Bitcoin, measured in BTC/USD, has increased by 15% in a single week. Surprisingly, this upward trend coincides with US Vice President Joe Biden’s address to the nation on the conflicts in Ukraine and Israel. Following the address, both Bitcoin and its traditional counterpart, gold, increased in value.
Another notable element in Hess’s analysis is the current monetary policy scenario. While the Federal Reserve of the United States continues to battle inflation, it has chosen Stop increasing interest rates,
Hayes also points to the interconnected nature of the US Treasury market, where the structural hedging needs of banks and the borrowing requirements of the US military machine maintain a symbiotic relationship that adds a new layer of complexity to financial markets generally, which Potentially increasing the attractiveness of Bitcoin. A way to avoid the uncertainties of the traditional financial system.
Hayes has always maintained an optimistic outlook on Bitcoin and remains one of the market analysts who believes that the best is still to come for the leading cryptocurrency. He believes we will see a value of $1 million for the coin in the long term.
The fundamentals supporting the imminent growth of Bitcoin
Beyond the role of geopolitical tensions that are weakening US finances, expectations of the possible approval of a Bitcoin spot exchange traded fund (ETF) product by the United States Securities and Exchange Commission (SEC) are changing the outlook for the Bitcoin market. . Complete.
Institutional demand for the ETF, which many believe will be led by BlackRock, is high. Although the number of companies like BlackRock in this race is more than 7 Impact is considered significant To gain approval and lead to a new rally in the price of Bitcoin.
upcoming stop The market has still not priced in sentiment, a move that would prove to be a hugely good omen for Bitcoin if it appeared.
Benjamin Godfrey is a blockchain enthusiast and journalist who loves writing about real-life applications of blockchain technology and innovations to promote general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies drives his contributions to well-known blockchain media and sites.
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