Arthur Hayes Forecasts Improved Bitcoin Performance Within a Year, Asserting the Bull Market Commenced in March
In a compelling keynote speech at the 2023 Korea Blockchain Week (KBW), Arthur Hayes, co-founder of BitMEX, took center stage to make a bold prediction regarding the state of the cryptocurrency market. Hayes confidently asserted that Bitcoin had been in a bull market for the past six months, despite what appeared to be a lackluster market response. He further predicted that the market would soon catch up to this bullish sentiment within the next six to twelve months.
Hayes’ reasoning behind his prediction was tied to a significant event that took place earlier in the year. He stated, “The Bitcoin bull market began on March 10, the day Silicon Valley Bank (SVB) was acquired by the U.S. Federal Deposit Insurance Corporation (FDIC).” This date marked a turning point, according to Hayes, as it initiated a series of events that propelled Bitcoin into its current bull run.
Two days prior to SVB’s acquisition, on March 8, Silvergate Bank faced liquidation, sending shockwaves through the financial sector. Shortly after, on March 12, New York regulators shut down Signature Bank. These developments raised concerns about the stability of traditional banking institutions.
In response to this crisis, the Federal Reserve acted swiftly by establishing the Bank Term Funding Program (BTFP). This program provided loans to banks for up to one year, with the condition that they submit eligible assets as collateral. The program’s sizeable infusion of $25 billion into the banking sector aimed to bolster confidence and prevent further bank collapses.
Arthur Hayes explained, “Bitcoin prices have been on a steady rise since these events unfolded, with the cryptocurrency’s value currently up by approximately 26%. This is why I believe the bull market officially began on that fateful day in March.”
He went on to emphasize the resilience of Bitcoin, stating that even if central banks, including the Federal Reserve, continued to raise interest rates or engage in money printing to combat inflation, Bitcoin would remain resilient. In Hayes’ view, the cryptocurrency market had matured to a point where it could thrive under various economic scenarios.
“Whether the Federal Reserve chooses to raise or cut interest rates, both scenarios benefit cryptocurrencies. We are in a strong position as an industry,” Hayes declared confidently.
Hayes’ prediction carries significant weight within the cryptocurrency community, given his background and experience in the field as the co-founder of BitMEX, one of the world’s leading cryptocurrency derivatives exchanges. His assessment of the market’s trajectory has sparked a renewed sense of optimism among cryptocurrency enthusiasts who are now eagerly watching to see if his forecast of a resurgent Bitcoin market in the coming months will materialize.
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