Global Quantative Easing to Boost Bitcoin, Predicts Arthur Hayes

Arthur Hayes, co-founder of BitMEX, believes that the quantitative easing (QE) policies being implemented by various governments will have a positive impact on Bitcoin and the overall crypto market.

He discussed these insights in his recent blog post, emphasizing that the increased money supply will likely flow into digital assets, especially Bitcoin, which he views as a robust hedge against excessive fiat creation.

Hayes’ comments come in light of recent actions from the U.S. Federal Reserve and China’s central bank, both of which have lowered interest rates to stimulate their economies. He anticipates that this influx of liquidity will elevate Bitcoin’s price, suggesting that investors should aim to acquire BTC at the lowest possible cost. This can be achieved through various means, such as earning Bitcoin directly, mining, or borrowing money at low rates to invest in it.

However, Hayes cautions against using leverage for Bitcoin purchases, urging a long-term holding strategy. He warns of potential risks associated with volatility, stating that if elites can no longer manage it, a financial reset may occur, impacting all assets, though he believes Bitcoin would fare better than others.

Looking ahead, Hayes expects Bitcoin’s value to rise as governments ease monetary policies and anticipates that the Federal Reserve will continue to reduce interest rates.

He also predicts that European governments will pressure banks to increase lending to support local economies, with China likely to follow suit in response to U.S. actions. As these monetary conditions loosen, Hayes advises investors to consider converting fiat currency into cryptocurrencies.