Arthur Hayes Anticipates Bitcoin To Benefit From ‘Volatility Supercycle’

Arthur Hayes, the co-founder of the BitMEX crypto exchange, has predicted that the quantitative easing (QE) measures that several governments are adopting will benefit Bitcoin and the broader crypto market. He also revealed how market participants could benefit from this projected price boom for BTC.

Arthur Hayes Expects Bitcoin To Benefit From Money Printing

Hayes suggested that Bitcoin will benefit from world governments printing more money to suppress volatility. In his recent blog post, ‘Volatility supercycle,’ he stated that all this fiat must go somewhere and remarked that it will find its way into Bitcoin and crypto. He added that BTC “is the most technically sound way in this modern digital world to balance the profligacy of the ruling elite.”

Arthur Hayes’ statement follows the recent US Fed rate cuts and China’s stimulus package to revive its economy. The People’s Bank of China (PBoC) Governor Pan Gongsheng announced rate cuts in the reserve ratio requirement and short-term interest rates. China also plans to inject liquidity into the country’s stocks.

As the MitMEX founder predicts, these governments’ quantitative easing (QE) measures provide a bullish outlook for BTC. Some of this liquidity will flow into the flagship crypto, causing its price to rise. In line with this, Hayes stated that the goal of every investor, trader, and speculator is to “acquire Bitcoin at the cheapest cost possible.”

He added that this could mean being paid in BTC, engaging in mining services, or borrowing fiat at low rates to purchase the flagship crypto. Meanwhile, the BitMEX founder warned against using leverage to buy Bitcoin, stating that one is meant to hold the asset for a long period.

There Are Risks Involved

Arthur Hayes warned that the “real risk” in adopting this Bitcoin strategy is when the elites can no longer suppress volatility, which then surges to its natural level. He stated that this could lead to a system reset, alluding to a financial collapse. He predicts everything will go down when that happens, although he claims BTC will fall less.

As such, he remarked that those who adopted the Bitcoin strategy will still outperform, even though their overall wealth will drop. Despite the belief that BTC and crypto assets can provide a haven for investors, Hayes remarked that nothing is “risk-free” in the universe.

For now, Hayes expects Bitocin to enjoy smooth sailing as the governments continue to ease monetary conditions. He predicts that the US Federal Reserve will continue to cut interest rates while the banking system produces more dollars. The Fed revealed they might cut rates by two more 25 basis points (bps) this year.

Arthur Hayes stated that national governments in Europe will force banks to issue more loans to local companies so they can provide jobs and rebuild the crumbling infrastructure. The crypto founder expects China to print money if the Fed decides to do so. He claimed that would just be the start and that the real “bazooka” would begin when China’s President Xi Jinping instructs banks to issue more credit.

As monetary conditions begin to ease, Hayes predicts that the fiat value of Bitcoin and other crypto assets will start to pump. He again advised anyone holding fiat to invest it in the crypto market.

It’s also worth noting that Bitcoin (BTC) price on Monday traded at $63,520, up nearly 2.5% in the past 24 hours. The flagship crypto’s 24-hour low and peak were $61,924.08 and $63,957, respectively.