Arthur Hayes Predicts Bitcoin Boom as Central Banks Cut Interest Rates

Bitmex co-founder Arthur Hayes is optimistic about bitcoin’s future, citing recent interest rate cuts by central banks. He believes further rate cuts by the U.S. Federal Reserve, Bank of England, and European Central Bank could expand the money supply and drive inflation. Hayes argues that while inflation may negatively impact some businesses, it would benefit bitcoin due to its fixed supply and deflationary nature.

Arthur Hayes Predicts Bitcoin Surge Amid Central Bank Rate Cuts

Arthur Hayes, co-founder of crypto exchange Bitmex, has expressed a bullish outlook for bitcoin in light of recent monetary policy decisions by major central banks.

In an opinion piece published this week, Hayes argued that as the U.S. Federal Reserve, along with the Bank of England (BOE) and European Central Bank (ECB), continue to cut interest rates despite inflation remaining above target, there is a strong likelihood that these actions will lead to further expansion of the money supply. Hayes stated:

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 U.S. recession.

Hayes believes that a significant increase in money supply could lead to inflation, which might negatively impact certain businesses. However, he sees this as a positive scenario for bitcoin, which is designed to be a deflationary asset with a fixed supply.

“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,” Hayes predicts, adding:

But for assets in finite supply like bitcoin, it will provide a trip at lightspeed 2 Da Moon!

What do you think about Arthur Hayes’ bullish outlook on bitcoin amid central bank rate cuts? Let us know in the comments section below.