BitMEX’s co-founder Arthur Hayes shares his positive view on Bitcoin (BTC) despite the current market dip.
Hayes writes in a recent essay that the interest from US government paper might be used to help the value of Bitcoin and other cryptocurrencies.
BitMEX’s co-founder believes that contrary to predictions, he expects Bitcoin will decline by less than 5% from its present price.
“I also think that eventually more investors will do the math and understand that the Federal Reserve and the US Treasury are giving away billions of dollars every month to rich savers. Tech stocks and cryptocurrency are likely beneficiaries of this influx of capital. There is a lot of wealth that has to be invested in finite-supply financial assets like cryptocurrency, notwithstanding how gloomy the conventional financial media may make a severe decline in crypto prices seem.
While some predict a Bitcoin price drop below $20,000, I anticipate the cryptocurrency to stabilize around $25,000 to start the third quarter. Depending on how much interest money is seeking for a new home, crypto may or may not be able to withstand the storm.”
The crypto investor also claims that the Federal Reserve’s actions to relieve liquidity strains at US banks would have positive effects on risk assets such as cryptocurrencies and tech stocks.
“Having more dollars available is also good for Bitcoin. Wealthy individuals don’t need material possessions since they have the means to indulge their every want via their wealth. Since there is a limited amount of Bitcoin in circulation, its value relative to fiat currencies will increase as the denominator of toilet paper increases. Due to this, Bitcoin has gained 18% since March.
Tech stocks and crypto will keep going up as long as the Fed sticks to its present course. There is nowhere to invest your money that will provide you a better return than the Federal Reserve Bank, which now offers a near-6% interest rate.”
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