Crypto

Former BitMEX CEO expects US to start printing USD again despite rising inflation


Arthur Hayes, the former CEO of the BitMEX cryptocurrency exchange, has said that the US Federal Reserve could start printing additional dollars. Hayes says that the Fed will print more to weaken the value of the USD amid rising global inflation rates that have weakened many currencies against the USD.

Federal Reserve could print more dollars

Hayes posted a tweet on July 15 asking his followers to be keen on the performance of the Euro and the Japanese Yen. He said that the Fed could start printing more dollars to ensure that the euro and the yen do not fall further below the USD value. This situation could be bullish for Bitcoin.

If the Fed strengthens the dollar, it could make it easier for consumers and businesses to buy international products. It will also help maintain the position of the USD as a global reserve currency.

Buy Bitcoin Now

Your capital is at risk.

However, weakening the dollar could cause losses for US exporters. Foreign institutions servicing debt dominated in USD could also experience strain repaying their obligations and be forced to disclose their US treasuries and equities. This will raise bond yields.

Effects of USD performance on Bitcoin

Bitcoin performed well in 2021 compared to any other asset class. The US Federal Reserve has introduced new monetary policies to battle the rising inflation. In May and June, the Fed increased the interest rates, and Bitcoin dropped to lows last seen in 2020.

Over the past year, the correlation between Bitcoin and the equities market has increased. Long-term investors in Bitcoin have also admitted that the coin is now performing the same as a “growth stock.”

Therefore, investors now believe that any changes introduced by the Federal Reserve will affect the performance of Bitcoin. The CEO of Galaxy Digital, Michael Novogratz, issued a statement in June saying that the price of Bitcoin could rebound after the central bank reverses its policies.

Novogratz believes that if the Fed changes course, traditional macro funds that have performed well over the past year could start buying Bitcoin. The CEO of FTX, Sam Bankman-Fried, also believes that the rising interest rates were behind the crypto market downtrend. He added that the recent crypto market performance amid the Fed changes shows that the market was behaving differently from previous periods.

Read more:

Battle Infinity – New Crypto Presale

Battle Infinity
  • Presale Until October 2022 – 16500 BNB Hard Cap
  • First Fantasy Sports Metaverse Game
  • Play to Earn Utility – IBAT Token
  • Powered By Unreal Engine
  • CoinSniper Verified, Solid Proof Audited
  • Roadmap & Whitepaper at battleinfinity.io

Battle Infinity






Source link

Related Articles

Back to top button