Bitcoin

Arthur Hayes predicts an imminent bull run for Bitcoin as G7 central banks begin to ease policy

Published

11 months ago

8 June, 2024

Arthur Hayes predicts impending bull run for Bitcoin as G7 central banks start easing policy

Co-founder of BitMEX Arthur Hayes believes that recent policy changes by global central banks herald the start of a significant bull market for Bitcoin and high-potential altcoins.

In his latest blog post, “Group of fools,” Hayes articulated how these changes in monetary policy create fertile ground for the crypto market to grow.

Hayes highlighted recent rate cuts by the Bank of Canada (BOC) and the European Central Bank (ECB) as pivotal moments. These decisions mark the first time in years that G7 countries have reduced their benchmark interest rates.

According to Hayes, this move will inject new energy into the crypto market. He said:

“The trend is unmistakable. Central banks are starting to ease monetary policies. This is the time to invest heavily in Bitcoin and altcoins.”

Central bank flexibility

At the heart of Hayes’ criticism is the G7’s handling of the Japanese yen, which he argues is misguided.

Hayes previously suggested that the US Federal Reserve (Fed) should exchange unlimited amounts of newly printed dollars with the Bank of Japan (BOJ) for yen. This move, he said, would give the Japanese Ministry of Finance unlimited dollar resources to buy yen on global currency markets, thus strengthening the yen.

However, he noted that the G7’s current strategy appears to focus on convincing markets that the interest rate differential will narrow over time, which he believes will lead to the buying of yen and the selling of other currencies.

The crux of Hayes’ argument lies in the disparity between the BOJ’s policy rate of 0.1% and the 4% to 5% rates of other G7 central banks. He claims that this differential fundamentally drives exchange rates.

He further explained that during the pandemic, central banks around the world provided cheap money to counter economic slowdowns, but rising inflation forced everyone, except the BOJ, to raise rates aggressively. The BOJ’s inability to raise rates stems from its massive holdings in Japanese government bonds (JGB). Raising rates would cause JGB prices to fall, leading to significant losses for the central bank.

Hayes stressed that cutting rates to reduce the interest rate differential is the only viable option left for the G7, despite inflation still being above target levels for most of these central banks.

Hayes said recent rate cuts by the BOC and ECB are strange given that inflation in both regions remains above their 2% targets. He speculated that these cuts could be a coordinated effort to manage the value of the yen and avoid a potential devaluation of the Chinese yuan, which could destabilize the global financial system.

Looking ahead, Hayes expressed doubts about whether the Fed would cut rates so close to the upcoming US presidential election, despite market speculation. He predicted that the Fed and BOJ would likely maintain their current policies at their upcoming meetings, with a potential surprise rate cut from the Bank of England (BOE) after the G7 summit.

Hayes concluded that recent rate cuts signal the start of an easing cycle, which he believes will reinvigorate the crypto market.

New highs

Hayes sees these conditions as a catalyst for the crypto market. He indicated that he is moving his own investments from stablecoins back to “high conviction shitcoins,” although he plans to reveal specific tokens only after securing his positions.

He also urged projects in his Maelstrom portfolio to proceed with token launches without delay.

Reflecting on historical trends, Hayes noted that both traditional stocks and Bitcoin have historically risen during periods of low interest rates.

He pointed to Bitcoin’s dramatic rise from less than $4,000 to $64,000 between March 2020 and April 2021 following the Fed’s drastic rate cut to 0.25%.

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Bitcoin

What to watch for in the markets

Published

9 months ago

21 July, 2024

SatoshiTimes Staff

Photo: Andrew Harnik (Getty Images)

After witnessing one of the largest global IT outages on record, affecting the travel, finance and healthcare sectors worldwideThis week is set to see more political drama, events, and earnings reports from tech giants.

Donald Trump’s ‘Lovefest’ Sets Jamie Dimon Up for Consideration for Treasury Secretary Job

Let’s take a look at what awaits us:

Major companies will release their earnings reports

Major tech companies and others will release their earnings reports this week, paving the way for what the second half of 2024 will look like.

Monday

Verizon will report earnings before the start of operations.

Tuesday

Coca-Cola, Comcast and UPS are all set to report earnings before the market opens.
Tesla will report earnings in the morning, while General Motors will report earnings in the evening.
Alphabet and Visa will report results after the market closes.

Wednesday

AT&T will release its report before the market opens.
Ford and Chipotle will report earnings after the market closes.

Thursday

Earnings reports from AstraZeneca, American Airlines and Southwest Airlines will be released before the market opens.

Trump to speak at Bitcoin conference

Presumptive Republican presidential nominee Donald Trump will speak at the next Bitcoin Conference in Nashville, Tennesseewhich is scheduled for July 25-27. While this is the first time a presidential candidate will attend the conference, it has sparked a debate over whether the crypto-friendly Trump will receive support from the crypto community in the upcoming election.

In addition to Trump, independent presidential candidate Robert F. Kennedy Jr. will also discuss crypto during the conference. Crypto advocates such as ARK Investment’s Cathie Wood, MicroStrategy’s Michael Saylor, and whistleblower Edward Snowden are among some prominent names who will be participating in the conference.

Ether ETFs are on the way

New Ether Spot ETFs are set to begin trading on Tuesday, July 23. Much like the spot Bitcoin ETFs, these ETFs will allow investors to buy the second most popular cryptocurrency like stocks. BlackRock, Ark Invest/21Shares, VanEck, Grayscale, Fidelity, Bitwise, Franklin Templeton, and Invesco/Galaxy Digital are all set to offer Ether ETFs. Crypto asset manager Bitwise predict that trading in the Ether ETF will drive the price of Ether higher, potentially surpassing $5,000.

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Bitcoin

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Published

9 months ago

21 July, 2024

SatoshiTimes Staff

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Bitcoin miners and cryptocurrency companies that have been blocked from going public in the U.S. could ultimately be the biggest winners in the digital asset world under a second Donald Trump presidency. Foreign companies at risk of losing market share could end up being the biggest losers.

That’s the view that’s taking hold among market participants and observers in the wake of the former president’s growing embrace of cryptocurrency as his chances of election grow. survey released Thursday by CBS News showed Trump with the majority — 52 percent — of likely voters in his likely November rematch with President Joe Biden.

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Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Published

9 months ago

21 July, 2024

SatoshiTimes Staff

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Cryptocurrency investor Chris Burniske says Bitcoin (BTC), Ethereum (ETH), Solana (SUN) and the cryptocurrency market in general seem poised for a run.

Former Head of Cryptocurrency at ARK Invest account his 292,200 followers on social media platform X that several catalysts are aligning, suggesting that digital asset markets are on the verge of a bull run.

According to Burniske, a partner at venture capital firm Placeholder, the highly anticipated launch of Ethereum-based exchange-traded funds (ETFs), Republican presidential candidate Donald Trump speaking at an upcoming Bitcoin event, and the current state of the BTC, ETH, and SOL charts all suggest significant optimism for the cryptocurrency markets.

“With ETH ETFs set to go live, Trump speaking at The Bitcoin Conference, and BTC, ETH, and SOL charts looking [they do] (while stocks are weak), it’s hard to imagine a world where we don’t ship next week.”

Reuters recently reported that preliminary approval for ETH ETFs has been granted as the Bitcoin Conference is scheduled to take place from July 25-27.

BTC, ETH, and SOL are trading at $67,333, $3,528, and $174 at the time of writing, respectively.

The venture capitalist too provides an update on his prediction that the total crypto market cap will eventually hit $10 trillion. According to his chart, the path to $10 trillion is currently “23%” complete, as it sits around $2.2 trillion.

Source: Chris BurniskeX

Earlier this month, Burniske he said in an interview with Real Vision CEO Raoul Paul that he has his eye on the Move ecosystem, which was originally built by social media giant Meta and then used to develop layer 1 blockchains Sui (IUE) and Apts (APT).

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Here’s the next target for BTC before bulls can hold out for $70K

Published

9 months ago

21 July, 2024

SatoshiTimes Staff

Here’s the next target for BTC before bulls can hold out for $70K

Bitcoin’s recovery is going well, and the market is seemingly poised to create a new all-time high in the near term.

Technical analysis

Per NegotiationRage

The daily chart

As the daily chart shows, the price of Bitcoin has been rising since it broke above the 200-day moving average.

The market has also reclaimed the $60K and $65K levels and is moving towards the $68K resistance zone, which could be the last hurdle before creating a new all-time high. With the RSI also indicating that the price has clear bullish momentum, it could be just a matter of time.

Source: TradingView

The 4-hour chart

Looking at the 4-hour chart, it is evident that the price has been rising rapidly since breaking the downtrend line to the upside. The market also broke the $65K resistance level with momentum, turning it into a support.

While almost everything points to a new record high in the coming weeks, there is one worrying sign. The RSI is showing a clear bearish divergence between recent price highs, which could indicate a correction or even a reversal in the near term.

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