Face-Ripping Bitcoin and Crypto Rally Incoming Amid US Banking Crisis, Says BitMEX Founder Arthur Hayes
BitMEX co-founder Arthur Hayes says he’s preparing for a massive Bitcoin and crypto rally as the Biden Administration fights to contain contagion from spreading through the American banking system.
In a series of tweets, Hayes says he believes the Federal Reserve will be forced to completely stop its rate hikes and begin to inject money back into the system, paving the way for an influx of capital into risk assets and particularly the crypto markets.
The prediction comes as the US banking crisis continues, with First Republic Bank shares down 75% on Monday as investors scramble to reassess their portfolios and as individuals and corporations examine the safety of their assets within the nation’s regional banks.
Hayes says he believes the outcome is already clear.
“Are you ready for the mother fucking bull market?
45 minutes into the US [market] open, and banks getting halted left, right and center. By 4:00pm eastern the Fed Funds might be back at 0%…
Get ready for a face ripping rally in risk assets. MONEY PRINTER GO BRRR!!!”
That’s a fucking savage move in the 2yr. In case you think this is something other than what it is. The bond market is saying it’s back to print dat money mode. Don’t fight the Fed!!!! pic.twitter.com/dPWQeHt9j9
— Arthur Hayes (@CryptoHayes) March 13, 2023
The price of Bitcoin, which was built to be a decentralized, self-powered bank in cyberspace without the need for a middleman, is already soaring amid the banking crisis.
Bitcoin has jumped from a Friday low of $19,662 to $24,231 at time of publishing, representing a stunning 23% turnaround.
On Sunday, the Biden Administration announced it would backstop all depositors at the failed Silicon Valley Bank as well as the newly shuttered Signature Bank and ensure everyone can get their money out.
The move is designed to reassure the American public that the money they hold in their bank accounts is safe, and that even accounts holding more than the FDIC-insured amount of $250,000 will remain intact.
The Fed has created a separate facility designed to offer loans for up to one year to institutions affected by the bank failures.
Regional American banks are failing due to fears about the investments they made in US bonds, which are designed to maintain a stable value and offer institutions a safe way to diversify and earn yield.
But the value of those bonds has plummeted amid the Fed’s series of aggressive rate hikes.
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The post Face-Ripping Bitcoin and Crypto Rally Incoming Amid US Banking Crisis, Says BitMEX Founder Arthur Hayes appeared first on The Daily Hodl.
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Author: Daily Hodl Staff
