Bitcoin (BTC) is facing a “trigger” moment that keeps a $1 million BTC price in play, one of its household names said.
In a blog post titled “The suburbs“Published on October 24, Arthur Hayes, former CEO of crypto exchange BitMEX, said Bitcoin is already warning markets about the future.
“Global wartime inflation” to boost Bitcoin and gold prices
As the United States becomes increasingly involved in two new wars, the risk of global escalation increases, Hayes believes.
The timing is striking: the US Federal Reserve faces persistent inflation but has halted interest rate increases and experienced a so-called “interest rate hike”.stiff bear» threatens the economy.
“The structural hedging needs of banks and the borrowing needs of the US war machine reflexively feed off each other in the US Treasury market,” he writes.
“If long-term U.S. Treasuries don’t offer investors any security, then their money will look for alternatives. Gold, and especially Bitcoin, will begin to rise due to real fears of global wartime inflation.
The writing is already on the wall. BTC/USD is up 15% this week, and the gains follow those of US President Joe Biden. address to the nation on the wars in Ukraine and Israel.
Today, the blog post reiterates, “directly after Biden’s speech, Bitcoin – as well as gold – is rallying amid an aggressive sell-off in long-term US Treasuries.” »
“This is not about speculation about whether an ETF will be approved – this is about Bitcoin accounting for a future highly inflationary world war situation,” he continues.
Hayes is well known for his predictions how the global economy will evolve post-COVID-19 and the ensuing inflationary period.
As part of the repercussions on Bitcoin, a A Million Dollar BTC Prize Is At Stake — something that was repeated on social media this week. This will result from what is known as yield curve control (YCC) – the ultimate measure of controlled economics that is already beginning to take hold in Japan.
Bond defenders cry “down with the dollar.”
Don’t miss my spicy essay “The Periphery” coming out this week in which I discuss the Hamas war against Israel, the US Treasury market and $BTC.
YCC = 1mm $ $BTC is in full force.
-Arthur Hayes (@CryptoHayes) October 23, 2023
“And ultimately, when yields get too high, the Fed must end any pretense that the U.S. Treasury market is a free market. On the contrary, it will become what it really is: a Potemkin village where the Fed sets the level of interest at politically expedient levels,” “The Periphery” meanwhile concludes.
“Once everyone understands the game we are playing, the Bitcoin and crypto bull market will be in full swing. This is the trigger, and it’s time to start moving away from short-term US Treasuries and into crypto.
Dalio warns against “very costly” choices
As Cointelegraph reported, macroeconomic concerns are becoming increasingly vocal this quarter due to the growing presence of war.
Billionaire investor Ray Dalio, founder of the world’s largest hedge fund Bridgewater Associates, recently put the chances of a “World War III” scenario developing at 50%.
“I hope that the leaders of the great powers will step back wisely, even as they must prepare to be strong enough to successfully wage and win a hot war,” he wrote in a statement. LinkedIn Post on October 12.
“In my opinion, for this to go well, not only will the restraint of the participants be tested, but alliances that tend to attract non-combatant parties will also be tested. Indeed, the fact to be allied and helpful to allied countries in these brutal wars are always very costly and increase the risk of being fully drawn into war.This is how local wars turn into global wars.
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