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Arthur Hayes forecasts Bitcoin surge as central banks slash interest rates

Arthur Hayes forecasts Bitcoin surge as central banks slash interest rates

GrafaGrafa2024/09/01 07:35
By:Isaac Francis

Bitmex co-founder Arthur Hayes is bullish about Bitcoin's future, citing recent and potential future interest rate cuts by central banks.

Hayes believes that rate cuts by the U.S. Federal Reserve, Bank of England, and European Central Bank could lead to an expansion of the money supply.

In an opinion piece published this week, Hayes emphasised that central banks are cutting rates even though inflation remains above target, which could further boost inflation.

He speculated: "If the Fed is cutting rates when inflation is above target and growth is strong, imagine what they will do if there actually is a U.S. recession."

Hayes argues that an expanded money supply could lead to more inflation, negatively affecting some businesses but benefiting Bitcoin (CRYPTO:BTC) due to its fixed supply and deflationary design.

"They will ramp up the money printer and dramatically increase the money supply," Hayes predicts, suggesting that such actions could harm businesses dependent on stable inflation rates.

However, for Bitcoin, which is capped in supply, Hayes envisions this scenario as a catalyst for rapid value growth, stating it would be "a trip at lightspeed 2 Da Moon!"

Hayes's comments reflect a broader sentiment among crypto enthusiasts who view Bitcoin as a hedge against inflation and central bank policies that increase fiat currency supply.

The perspective suggests that as fiat currencies potentially lose value due to inflation, assets like Bitcoin, which are limited in supply, could see significant price appreciation.

Hayes remains confident that Bitcoin's deflationary characteristics will position it as a valuable asset in an environment where traditional currencies are devalued by central bank actions.

At the time of reporting, Bitcoin price was $58,212.74

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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