BitMEX founder Arthur Hayes updates Bitcoin forecast, predicts the Fed will be forced to print trillions of dollars
Former BitMEX CEO Arthur Hayes says he expects Bitcoin (BTC) to bottom out and recover quickly as he predicts that the Federal Reserve will once again inject trillions of dollars into the financial system.
The crypto-capitalist says that he closely monitors how the Japanese yen (JPY) and the euro (EUR) perform against the US dollar.
According to Hayes, the sustained strength of the US dollar against these currencies is likely to force the Fed to intervene and turn the switch on the money printing machine.
Must see: JPY and EUR.
Expect an “intervention” to weaken the USD if JPY> 150 and or EUR <0.90.
“Intervention” means that the Fed prints money.
Printing money means that the BTC number goes up. “
In a new blog post, Hayes explains his dissertation by highlighting how both Japan and the EU are involved in yield curve control (YCC). According to Hayes, the YCC is the action to expand the money supply to buy government bonds and reduce returns in an attempt to weaken the country’s fiat currency.
“In general, Japan and the EU are happy to have a weak yen or euro relative to the rest of the developed world. This allows their export industry to gain market share, as their goods are cheaper compared to other countries.”
Hayes says, however, that the time is different as rising inflation has made it challenging for residents of Japan and the EU to afford daily expenses.
“Due to the food and fuel inflation experienced after COVID and the cancellation of Russian commodity exports, their plebes are now facing the hard disadvantages of having a weak currency. It is becoming more and more expensive for them to eat, move and heat / cool. down their homes. ”
Hayes says that if America is determined to defeat Russia through economic sanctions, the United States must find a way to weaken the dollar against the JPY and the EUR.
“At the behest of the US Treasury Department, the Federal Reserve Bank of New York’s trading desk could print USD, buy JPY / EUR and buy Japanese government bonds (JGB) or government bonds from EU members, park them in the Exchange Stabilization Fund (ESF) on its balance sheet. “
Should the United States turn on the money writers again to support its allies, Hayes says that the increase in liquidity will eventually find its way to Bitcoin and the crypto markets.
“With more fiat liquidity swirling through the system, risk assets – which include cryptocurrencies – will bottom out and quickly begin to recover as investors discover that the central bank’s financial asset market has been activated.”
Don’t miss a beat – Subscribe to have crypto email alerts delivered directly to your inbox
Check price action
Follow us on TwitterFacebook and Telegram
Surf The Daily Hodl Mix
 
 
Disclaimer: Opinions expressed by The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment adviser. Please note that The Daily Hodl participates in affiliate marketing.
Featured image: Shutterstock / GrandeDuc / PurpleRender
