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$BTC Arthur Hayes: The Worst Scenario for Bitcoin — Falling Below $70,000
According to Arthur Hayes, ultimately the policies of the U.S. Federal Reserve (Fed) will create a rosy picture for Bitcoin, as after the recession the regulator will respond with a set of measures that will increase the supply and decrease the cost of money.
"The market surged sharply on the news, but there is nothing new about this. It was just an excuse for a brutal 'dead cat bounce.' As long as the bull cycle continues, the worst-case scenario is a decline in BTC to $70,000," Hayes writes.
In his opinion, the policies of U.S. President Donald Trump will provoke an increase in the national debt, and the increase in the money supply will be a positive driver for the crypto market.
Hayes emphasized that during the pandemic, about $4 trillion was injected into the U.S. economy, which led to a 24-fold increase in Bitcoin. Now, a possible injection will amount to 70-80% of that volume, which could lead to a 10-fold increase in the cryptocurrency.
According to Arthur Hayes, ultimately the policies of the U.S. Federal Reserve (Fed) will create a rosy picture for Bitcoin, as after the recession the regulator will respond with a set of measures that will increase the supply and decrease the cost of money.
"The market surged sharply on the news, but there is nothing new about this. It was just an excuse for a brutal 'dead cat bounce.' As long as the bull cycle continues, the worst-case scenario is a decline in BTC to $70,000," Hayes writes.
In his opinion, the policies of U.S. President Donald Trump will provoke an increase in the national debt, and the increase in the money supply will be a positive driver for the crypto market.
Hayes emphasized that during the pandemic, about $4 trillion was injected into the U.S. economy, which led to a 24-fold increase in Bitcoin. Now, a possible injection will amount to 70-80% of that volume, which could lead to a 10-fold increase in the cryptocurrency.
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