Why Arthur Hayes Believes It’s Bitcoin’s Time to Shine?

In the middle of all the excitement and talk in the cryptocurrency industry, the price of Bitcoin (BTC) just dropped and settled at $34,452. This decline coincides with a startling statement made by Arthur Hayes, the former CEO of BitMEX and one of the most well-known figures in the sector. In his most recent blog article, “The Periphery,” which was published on October 24, Hayes issues a dire warning about the future that Bitcoin is delivering to international markets.

Global Wartime Inflation and Its Impact on Bitcoin and Gold

Hayes thinks the threat of “global wartime inflation” will be crucial to the direction that gold and Bitcoin prices go. Hayes contends that there is an increasing chance of a worldwide escalation given the US’s significant involvement in two recent conflicts. The timing of this incident is what makes it interesting. The US Federal Reserve has decided to stop raising interest rates as it struggles with ongoing inflation. The economy is also threatened by a phenomena called the “bear steepener” at the same time.

In Hayes’ words, “The structural hedging needs of banks and the borrowing requirements of the US war machine are intrinsically linked in the US Treasury market.” He further notes that if long-term US Treasury bonds no longer provide a safe haven for investors, they will naturally look for alternative assets. Gold and, most notably, Bitcoin will emerge as the primary beneficiaries as fears of global wartime inflation intensify.

There are already hints of this story starting to take shape. In just one week, the price of Bitcoin/USD has increased by 15%. These increases coincided with U.S. President Joe Biden’s speech to the public about the wars in Israel and Ukraine.

As Hayes points out in his blog post, “Right after President Biden’s speech, Bitcoin, along with gold, is experiencing a surge in value while long-term US Treasuries are being aggressively sold off.” He makes it clear that this is more than just conjecture regarding an Exchange-Traded Fund’s (ETF) acceptance. Rather, it represents Bitcoin’s reaction to a future when major inflation stems from international disputes.

Hayes is highly respected for his ability to predict the course of world economic events, especially in the inflation-ridden post-COVID-19 era.

Following these developments, there is growing interest in the idea that Bitcoin may someday cost $1 million. This week, social media platforms have been resonating with this message. The idea of “yield curve control (YCC),” a financial policy strategy that is currently gaining traction in Japan, serves as the inspiration for this prediction.

Hayes describes the endgame in this scenario, stating, “When yields reach unsustainable levels, the Federal Reserve will drop the facade that the US Treasury market is a free market. Instead, it will operate as it truly is: a Potemkin village where the Fed determines interest rates based on political expediency.” These profound insights are the conclusion of Hayes’ blog post, “The Periphery.”

In conclusion, Hayes emphasizes, “Once everyone grasps the dynamics at play, the Bitcoin and cryptocurrency bull market will be in full swing. This is the trigger, and the time has come to shift investments out of short-term US Treasury bills and into the world of crypto.”