๐ Will $BTC shoot up? Arthur Hayes analyzes the situation! ๐ช๐ฅ
As you know, the crypto market is still in consolidation โ positive vibes from the weekend's news quickly evaporated. What's next? ๐ค
Arthur Hayes in his latest post analyzes the current monetary policy of the USA and its impact on cryptocurrencies. Here are the key conclusions:
๐ฐ Trump and debt โ If he wins a second term, he wants to fund the "America First" program through cheap credit and new debt. The goal? Avoid a recession at all costs.
โ๏ธ Trump vs. FED โ The new Secretary of the Treasury, Scott Bessent, supports Trump, but Powell (head of the FED) balances between fighting inflation and pressure to lower rates.
๐ฆ DOGE (Department of Government Efficiency) โ The new unit is set to cut spending, which may mean layoffs in the public sector and... a recession, forcing the FED to ease policy.
๐ Recession = money printing โ Hayes claims that if the economy starts to crumble, the FED will lower rates, end QT, and initiate QE. Potential money printing of up to 3 trillion USD! ๐ณ
๐ฎ Bitcoin as a liquidity sponge โ If the FED fires up the printers, BTC may quickly bounce back and head towards 1 million USD during Trump's presidency.
โผ๏ธ Itโs worth noting that in his scenario, BTC may still drop to $70,000 before we enter the "banana zone" ๐๐ โ so itโs not worth over-leveraging!
โ Key takeaway? Bitcoin leads the markets โ it drops first, rises first. The market is manipulated, but itโs the HODL-ers and smart accumulators who will reap the biggest rewards in this cycle! ๐ฅ
๐ฌ What do you think about this? Are we facing another wave of money printing and a new ATH? Let us know in the comments! โฌ๏ธ
๐ Follow me if you want to stay updated with crypto market analyses! ๐๐ฅ
