BitMEX co-founder Arthur Hayes: Policy shift and liquidity injection, Bitcoin will be the biggest beneficiary

Currently, although the Federal Reserve, the Bank of England, and the European Central Bank are cutting interest rates, the author points out that this may trigger the re-emergence of the risk of yen carry trade, which will have a negative impact on the global Financial Marekt. Although economic data does not show weakness in the US economy, Powell chose to cut interest rates under political pressure instead of a more suitable interest rate hike strategy for the current economic situation, in order to avoid stock market declines and respond to political risks.

 

The author further expects that due to the interest rate cuts of major central banks and the liquidity injection of the US Treasury, the market will usher in an improvement in legal liquidity conditions, especially for assets with limited supply such as Bitcoin. Interest rate cuts and subsequent money printing will push their prices "to the moon" (soaring). The author is extremely optimistic about Bitcoin and believes that in the current Monetary Policy environment, Bitcoin will become the main beneficiary of the increase in money supply.

 

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