Arthur Hayes argues that Bitcoin is rising due to U.S. military spending and not ETF hype

BitMEX derivatives exchange co-founder Arthur Hayes wrote an article in which he claimed that the recent cryptocurrency market surge was caused by the expenses associated with aggressive U.S. foreign policy rather than the expectation of a Bitcoin exchange-traded fund.

In an article titled “The Periphery” published on October 24th, Hayes speculated that Vice President Joe Biden’s unwavering support for Israel’s battle against Hamas was the driving force behind the current boom in the cryptocurrency markets.

Including the bill for Ukraine, “America’s military budget is set to truly explode,” Hayes said. This will lead to further borrowing in the future, and there is no limit to how much money may be wasted on a conflict.

According to Hayes, in anticipation of increased U.S. military spending, institutional investors have begun selling bonds and treasury bills and will instead look for returns in other asset classes.

Hayes said that investors would go elsewhere with their money if they feel unsafe investing in long-term U.S. Treasury bonds. The real fear of global wartime inflation will cause a surge in gold prices and, more crucially, Bitcoin.

Hayes’s remarks follow a week in which Bitcoin’s value increased by 19.5%, a jump that many market observers attribute to BlackRock’s proposal for a Bitcoin exchange-traded fund (ETF).

Hayes observed that gold prices had risen since the outbreak of fighting in Gaza. According to Market Index, the price of an ounce of gold has risen 8.6 percent from October 4 to a current level of $1,975.

Also Read: Jamie Dimon Warns of Global Dangers and Demands “Real Leadership”