Bitcoin bulls may soon see a surge in the cryptocurrency’s value thanks to the United States government, according to a recent prediction by Arthur Hayes, the former CEO of crypto exchange BitMEX. Hayes believes that the rapidly increasing U.S. treasury yields could be a precursor to a new bull market for Bitcoin and other cryptocurrencies. He explains that the current rise in long-term interest rates, known as a “bear steepener,” is not factored into bank models, which could lead to significant pressure throughout the economy.
Hayes argues that the bear steepener could result in a return to mass liquidity injections, counteracting the quantitative tightening that has hindered crypto markets since late 2021. He suggests that this influx of liquidity will stimulate a new crypto bull market. Hayes also acknowledges that major casualties may occur along the way, noting that there may be no way out other than money printing to save government bond markets.
Data from TradingView reveals that 30-year U.S. government bonds yields hit 5% this week, marking the first time since August 2007, prior to the Global Financial Crisis. Philip Swift, creator of statistics resource LookIntoBitcoin, supports Hayes’ prognosis, suggesting that a theoretical return to money supply expansion would be a major catalyst for the Bitcoin bull market. He includes an annotated chart that demonstrates Bitcoin’s relationship with treasury yields.
As the United States adds to its record-high national debt at a rapid pace, with an increase of $275 billion in just one day, financial commentators raise concerns. Samson Mow, CEO of Bitcoin adoption firm Jan3, highlights that the U.S. added more than half of Bitcoin’s entire market cap in debt in a single day. This development, coupled with the ongoing uncertainty surrounding Bitcoin’s price, prompts Mow to express his surprise that some individuals remain unsure about the value of Bitcoin at $27,000.
At the time of writing, BTC/USD is trading at approximately $27,500. It is important to note that this article does not provide any investment advice or recommendations. Readers should conduct their own research and make informed decisions when it comes to investing in cryptocurrencies.
In conclusion, the increasing U.S. treasury yields and the potential for a bear steepener have led Arthur Hayes and Philip Swift to predict a new bull market for Bitcoin and crypto. This prediction is supported by the surge in national debt and ongoing uncertainty surrounding Bitcoin’s price. However, it is essential for individuals to conduct their research and consider the risks before making any investment decisions.
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