Arthur Hayes, the BitMEX co-founder, has made the headlines with his new crypto predictions. This time around, Hayes predicted that Bitcoin (BTC) would benefit from governments’ move to print more money to suppress volatility, as shown in his essay, “Volatility Supercycle.”
According to Hayes, several governments are adopting quantitative easing (QE) measures, and Bitcoin and other altcoins would benefit from it.
Arthur Hayes Predicted How Bitcoin Would Benefit From Fiat Money Printing
On Thursday, September 26, the co-founder of BitMEX, Arthur Hayes, published an essay titled ‘Volatility supercycle.’ In the essay, Hayes predicted that Bitcoin (BTC) will benefit as the governments of some countries print more money to suppress volatility.
Hayes explained that as governments print more fiat money, all the fiat money must go somewhere and would possibly find its way into crypto assets like Bitcoin. Hayes added that Bitcoin is the best way in this “modern digital age to balance the profligacy of the ruling elite.”
Hayes wrote this essay following the recent US Federal Reserve rate cuts and the Chinese stimulus package to revive its economy.
On Tuesday, September 24, Pan Gongsheng, the governor of the People’s Bank of China (PBOC), announced fresh stimulus measures to revive the country’s economy – rate cuts in the reserve ratio requirement (RRR) by a 50-basis point and short-term interest rates by a 20-basis point to 1.5%. China also announced that it will inject liquidity into the country’s stocks.
As Hayes predicted, these governments’ quantitative easing (QE) measures will trigger a bullish movement in Bitcoin as some of this liquidity will eventually flow into Bitcoin, causing its price to rise. He added that this is possible because the goal of every crypto speculator, trader, and investor is to “acquire BTC at the cheapest cost possible.”
He explained further that the inflow of liquidity into Bitcoin could mean being paid in Bitcoin, engaging in BTC mining services, or borrowing fiat money at low interest rates to buy Bitcoin.
Hayes’ Prediction Supports QCP Capital’s Report
On Wednesday, September 25, QCP Capital released a report on Bitcoin’s growth due to supportive global macroeconomic developments.
In the report, QCP Capital highlighted a number of macroeconomic developments that could trigger a bullish movement for risk assets like Bitcoin.
According to QCP Capital, quantitative easing from the People’s Bank of China (PBoC) following the recent interest rate cut by the US Federal Reserve (Fed) all suggests optimism about economic growth, which supports risk assets like Bitcoin in the medium to long term.
How True Is This Prediction?
On September 3, Hayes predicted that the price of Bitcoin (BTC), the largest cryptocurrency by market cap, could continue to drop to as low as $50,000 before a bullish rally toward the end of September. The price of Bitcoin almost followed the prediction.
Hence, there is a likelihood that this new prediction may materialize. Currently, Bitcoin is trading at about $65,422, rising from as low as about $62,600 to its current price. Perhaps this is the fulfillment of Hayes’ prediction.
