It’s Bitcoin’s Biggest Test, As Fed's Money Printer Goes Brrrr: BitMEX CEO Arthur Hayes

Cryptocurrency derivatives exchange BitMEX co-founder and CEO Arthur Hayes in his latest newsletter talked about the current economic environment with high inflationary expectations. According to him, while gold is set to shine in this changed economic regime, it is Bitcoin’s “biggest opportunity.”

In March, Bitcoin crashed by almost 53%, peak to trough as investors raced to the US dollar. According to Hayes, this 2020 Coronavirus crash was “inevitable.” As we have been seeing this past month, the economy and financial markets are set loose and this could be Bitcoin’s opportunity, in its short lifetime. Hayes said,

“Where the Bitcoin price may shine is in the volatile inflationary aftermath of the response to the crash.”

Fed printer Goes Brrrrrr, Got Gold & Bitcoin

In March, Bitcoin wasn’t the only to crash, it actually fell alongside every other asset, equities, stock market, oil, and gold. The 2020 coronavirus stock market crash is establishing itself as “one of the great stock market crashes,” right alongside the Global Financial Crisis of 2008, Dotcom bubble of 2000, 1997s Asian crisis, 1992’s Black Wednesday, Japan asset bubble in 1991, Black Monday of 1987, Oil crisis in 1973, and Wall Street Crash from 1929.

Central banks responded fast, purchasing more government debt and cutting the interest rate down to 0%. However, below zero and into the negative territory means “the public will simply hoard physical cash.”

In his post written in the week following the market crash, Hayes said that we have reached the “reversal interest rate” and the limits of central bank expansionary monetary policy and any further extreme measures will have a net negative impact on the real economy.

Central banks' monetary policy has an “uncertain outcome” with inflation as the clear winner. And the inflation will come and it will be a shock which we haven't seen for over 30 years, as such it will be a sudden economic and cultural shock, argued Hayes.

This will take us back to the 1970s when inflation was volatile and reached a high of 15%. And financial markets won't be unaffected by this which is used to the current regime where they are protected by a “central bank put.”

“Volatile times are ahead,” Hayes said.

Bitcoin (BTC) Live Price

1 BTC/USD =$9,202.5115 change ~ 0.47%

Coin Market Cap

$169.52 Billion

24 Hour Volume

$3.04 Billion

24 Hour VWAP

$9.24 K

24 Hour Change


Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Ethereum Layer 2 Solution, SKALE Network, Launches Its Mainnet Phase One; Staking & Bounties Start in Early Q3

SKALE - an open-source scaling solution backed by Gemini exchange founders Winklevoss brothers for scaling the Ethereum network - has started to roll out...

Pundi X Integrates PayPal into Point-of-Sale Device, XPOS; Users Can Buy & Sell Crypto Seamlessly

Pundi X, a blockchain firm based in Singapore, has integrated its point-of-solution (PoS) device, XPOS, with PayPal, according to a medium post on June...

Crypto Mining GPU Manufacturer, NVidia Petitions Court to Toss Out $1 Billion Class Action

NVidia has petitioned the California court to dismiss the class action suit made by its investors. The lawsuit against the firm’s top brass alleges that...

Hacker Extort 116.4 Bitcoin from University of California San Francisco (UCSF)

The University of California San Francisco (UCSF) paid a ransom of $1.14 million in Bitcoin after a ransomware attack earlier this month, reported BBC...

Targeting Institutional Investors: SBI Holdings Is Buying a Minority Stake in B2C2 Exchange

A unit of Japanese financial conglomerate SBI Holdings, SBI Financial Services is buying a minority stake in London-based crypto market maker B2C2 for $30...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today