BitMEX co-founder Arthur Hayes thinks impending rate cuts in the US will drive up the price of Bitcoin (BTC).
In a new blog post, Hayes said comments made by Federal Reserve Chair Jerome Powell last week indicate the Fed is “reaching for the rate cut sugar high before hunger arrives.”
[adinserter block="1"]While speaking in Jackson Hole, Wyoming, Powell said the time has come for “policy to adjust,” noting that incoming data would determine the pace of rate cuts.
Hayes says he doesn’t know if the rate cuts will benefit stock prices, but he’s confident about the policy change’s impact on Bitcoin.
“Some point to historical situations where the stock market fell as the Fed cut rates. Some fear that the Fed cutting rates is a leading indicator of a US and, by extension, developed market recession. That might be true, but if the Fed is cutting rates when inflation is above target and growth is strong, imagine what they will do if there actually is a US recession. They will ramp up the money printer and dramatically increase the money supply. That leads to inflation, which could be bad for certain types of businesses. But for assets in finite supply like Bitcoin, it will provide a trip at lightspeed 2 Da Moon!”
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any assets including cryptocurrencies, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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