Arthur Hayes, the founder of BitMEX, is making bold predictions about the future of Bitcoin. According to Hayes, the Bitcoin bull market began in March, coinciding with the collapse of the Silicon Valley Bank (SVB). He argues that the Federal Reserve’s $25 billion program to revive the US banking system has directed traders towards Bitcoin. Hayes sets a timeframe of six to twelve months for the market to respond to the current Bitcoin bull cycle. The price of Bitcoin has already risen by 26% year-to-date. According to Hayes, this rally began on March 10th and is likely to continue in the next six to twelve months. He shared these insights in a speech during Korea Blockchain Week. Contrary to popular belief in the crypto community, Hayes argues that the Bitcoin bull market was initiated by the Federal Reserve’s liquidity injection into the US banking system in March.
Forecast for Bitcoin
According to Hayes, the Federal Reserve’s Bank Term Funding Program (BTFP) of $25 billion was a turning point in the market. The injection of liquidity led investors to seek out limited supply assets like Bitcoin. Despite some traders arguing that the market is not behaving like a typical Bitcoin bull market, Hayes believes that investors will likely adjust to the trend in the next six to twelve months. He also mentioned the potential future interest rate hikes by the Federal Reserve, stating that regardless of whether the central bank continues to raise rates or print money, Bitcoin is likely to perform well. Hayes’ analysis is gaining attention in the crypto community, and significant market developments are expected in the coming months.