BitMEX co-founder believes that the catalyst for Bitcoin's bull run was the collapse of major banks in the United States.
Arthur Hayes, the co-founder and former CEO of BitMEX, asserted during his recent speech at Korea Blockchain Week that Bitcoin has been in a bull market since March despite the larger market not recognizing it.
Therefore, in his speech, Hayes claimed that the market is set to awaken in the next six to 12 months.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
ICO vs IDO vs IEO: Which One's the Best? (Easily Explained)
Arthur Hayes, who took the stage on September 5th, pinpointed the start of Bitcoin's current bull market to March 10th, the day the Federal Deposit Insurance Corporation took control of Silicon Valley Bank (SVB).
Hayes connected this event with a series of subsequent banking failures. Just two days prior, Silvergate Bank had liquidated, and two days afterward, Signature Bank was forced to close by New York state regulators.
To stabilize the situation, the Federal Reserve launched the Bank Term Funding Program (BTFP), which offered loanhs of up to a year to banks in exchange for “qualifying assets” as collateral. Commenting on this, Hayes said:
Essentially, what <the Fed> did was backstop the entire banking system by saying: "Please give me your underwater dogshit bonds and I'll give you fresh dollars."
He believes that this action by the Federal Reserve revealed the systemic flaws in the banking system and became the catalyst for Bitcoin's bull run.
Since that day in March, Bitcoin's price has surged approximately 26%, a fact Hayes attributes to a shift in traders' perspectives.
We basically ditched this whole facade that we care about the value of the dollar and the value of any fiat currency.
Hayes predicts that even if the Federal Reserve will continue raising interest rates or printing more money, the outlook for Bitcoin and the cryptocurrency market at large will remain optimistic.
On both scenarios, whether the Fed raises or cuts, we are in a good position as the cryptocurrency industry.
At the time of writing, Bitcoin retails for $25,817.08, recording a 0.33% price decline in the last 24 hours.
Arthur Hayes’ insights offer a different viewpoint on Bitcoin’s current status, projecting that the market will soon catch up to recognize the ongoing bull run. Whether or not central banks adjust their policies, Hayes maintains that Bitcoin stands in a favorable position, providing much food for thought for cryptocurrency enthusiasts.
