2023-09-05 09:36:25
Bitcoin was (BTC) has been on the upswing for the past six months or so, and the market hasn’t responded yet — it will in six to 12 months, according to Arthur Hayes, co-founder and former CEO of BitMEX.
In a September 5 speech at Korea Blockchain Week, Hayes argued that Bitcoin’s bull run began on March 10, the day the Federal Deposit Insurance Corporation (FDIC) acquired Silicon Valley Bank (SVB). ).
Two days before the acquisition of SVB Bank on March 8, Silvergate Bank entered liquidation. Two days later, on March 12, Signature Bank was forced to Lockdown by regulators in New York.
In response, and in an effort to prevent further potential crashes, the Federal Reserve was created Bank Term Finance Program (BTFP)which provides bank loans with a repayment period of up to one year in return for publishing “qualified assets” as collateral.
Hayes speaking at Blockchain Week Korea, Seoul. Source: Andrew Fenton / Cointelegraph
Hayes said: “Basically, what he did [الاحتياطي الفيدرالي] It is to prop up the entire banking system by saying, ‘Please give me your worthless jumbled bonds, and I’ll give you new dollars.'”
“The rest of the market and I know from this that they basically admit that they caused this problem — the structure of the banking system — and that’s one way you can fix it: print more money.”
since then, price rose Bitcoin — currently up about 26% — is why he claims that the bull market started that day.
“We’ve basically given up on this whole philosophy, where we care about the value of the dollar and the value of any fiat currency.”
Hayes claimed that this prompted traders to consider fixed-supply assets such as Bitcoin.
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However, the rest of the market has not yet responded, but he gave a six to 12 month timeline for that to happen.
Additionally, Hayes noted that even if the Fed and other central banks continue to raise interest rates to enable economic tightening or if they “print more money,” Bitcoin will still do well.
He also added that “either way, whether the Fed raises or lowers interest rates, the cryptocurrency industry will remain in good stead.”
Related Articles: Bitcoin Liquidations Reach $1 Billion Amid Bitcoin Blast
Translated by Albayan Gherra
Translation of the statement
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