Arthur Hayes Calls Cryptocurrency’s Sustained Bull Run the “Most Significant Financial Occurrence Since COVID-19”

Arthur Hayes, the co-founder of BitMEX, has made a bold prediction that the cryptocurrency market is set to enter a sustained bull run after a massive price correction, which he believes is looming.

Hayes expressed his views in a tweet announcing the release of his “take on the BTFP bailout” the following day, describing it as “the most important financial event since COVID.” He also suggested that traders who can correctly anticipate and navigate this event stand to benefit significantly from the resulting market conditions.

The statement follows a period of high volatility in the crypto market, driven in part by the liquidation of Silicon Valley Bank (SVB) and the depegging of USD Coin (USDC). Despite these challenges, Hayes is optimistic about the future of cryptocurrencies, stating that the recent turmoil may be a necessary prelude to a sustained bull run.

Hayes explained his reasoning further in a recent interview on the Crypto Banter show, where he warned that a massive correction in the cryptocurrency market is looming. He cited the anticipated raise of the US debt ceiling this year, along with the issuance of $1.1 to $1.2 trillion in Treasury bonds to fund the 2023 USG Federal Deficit, as factors that could lead to liquidity exiting the market.

Arthur Hayes, the co-founder of BitMEX

According to Hayes, this liquidity drain could pose a significant threat to risky assets such as Bitcoin, which could experience a substantial price correction. However, he added that this correction could also create a buying opportunity for savvy investors, setting the stage for a sustained bull run in the future.

Hayes’ predictions have garnered attention in the crypto community, with many traders eager to see how events unfold. If his views prove accurate, it could signal a new phase of growth and opportunity for the cryptocurrency market. However, as with any investment, it is crucial to approach it with caution and a deep understanding of the risks involved.

The Bank Term Funding Program (BTFP) has been announced by the Federal Reserve, which will provide short-term loans to eligible financial institutions, including banks, credit unions, and savings associations. These institutions can pledge their high-quality assets, such as US Treasuries, agency debt, and mortgage-backed securities, as collateral to secure loans of up to one year. The program will allow banks to borrow against their assets at face value and will provide an additional source of liquidity to prevent the need for selling securities during times of stress. The Fed will be provided with $25 billion in credit protection from the Exchange Stabilization Fund by the US Treasury, as per a statement by the Federal Reserve.

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