Bitcoin Will Enter ‘Secular Bull Market’ If Fed Pivots, Says Hayes

[ad_1]

Bitcoin, the digital currency known for its volatility and decentralized nature, is once again making headlines.

Given the recent price action of BTC, financial experts, like former BitMEX CEO Arthur Hayes, are now speculating on the potential impact of Federal Reserve monetary policy changes on the crypto market.

Will Bitcoin start a new bull run?

Recent data from the US Bureau of Labor Statistics showed that inflation, as measured by the Consumer Price Index (CPI), peaked at 9% in mid-2022 and is now declining towards the target level by 2%. Some experts believe the trend could signal a policy shift by Federal Reserve Chairman Jerome Powell, potentially moving away from quantitative tightening (QT) in response to the threat of a recession.

Source: United States Bureau of Labor Statistics

But what does this mean for Bitcoin? Many argue that the crypto market, especially Bitcoin, operates independently of manipulation by central banks and major financial institutions. Furthermore, the price of Bitcoin is highly dependent on the future development of global USD liquidity due to the role of the dollar as a global reserve currency.

Recent market performance suggests that investors are anticipating a policy pivot from the Federal Reserve. Some experts predict that if the Fed follows through with a policy change, it could continue to drive Bitcoin’s current rally and potentially start a “secular bull market.”

Source: BeInCrypto

Still, if the Fed doesn’t follow through or talk about any expectation of a pivot, Bitcoin’s price could potentially fall back to previous lows.

It is important to note that like any market, the crypto market is subject to fluctuations and corrections. Some have pointed to the failure of companies like Three Arrows Capital, FTX, Genesis and Celsius as proof of this. However, others argue that these failures were a natural part of the market correcting itself and purging itself of mismanaged companies with flawed business models, ultimately leading to a quick and healthy rebound.

As the world continues to watch the future of monetary policy and its potential impact on the crypto market, one thing is clear: the world of Bitcoin and digital currencies is changing rapidly, and the potential for volatility and growth remains. raised.

Disclaimer

BeInCrypto has reached out to a company or individual involved in the story for an official statement on recent developments, but has yet to receive a response.

[ad_2]