- Bitcoin bull market started in March with the collapse of the Silicon Valley Bank, according to Arthur Hayes.
- The former BitMex CEO says that the Federal Reserve’s $25 billion program to revive the US banking system pushed traders towards Bitcoin.
- Hayes gives a timeline of six to twelve months for the market to respond to the ongoing Bitcoin bull market.
Bitcoin price is up 26% year-to-date. This rally likely originated on March 10 and is likely to continue in the next six to twelve months, former BitMEX CEO Arthur Hayes said Tuesday in a speech at the Korea Blockchain Week, according to a Cointelegraph report.
Contrary to popular belief in the crypto community, Hayes said that the Federal Reserve’s injection of liquidity in the US banking system in March kicked off the BTC bull run.
Also read: Ethereum whales accumulate ETH as researchers explore scaling beyond EIP-4844
Bitcoin bull run likely kicked off after Silicon Valley Bank collapse
Arthur Hayes addressed the audience at Korea Blockchain Week and said that the Bitcoin bull market started on March 10, when the Federal Deposit Insurance Corporation took over Silicon Valley Bank (SVB).
Hayes said that the Federal Reserve announced its $25 billion Bank Term Funding Program (BTFP) in response to SVB’s collapse. Through this program, the US central bank offered loans of up to a year in return for banks posting “qualifying assets” as a collateral.
According to Hayes, this program was a turning point as the Federal Reserve’s liquidity injection made investors turn to fixed-supply assets like Bitcoin.
Bitcoin price has yielded 26% gains, since the beginning of 2023. While traders might argue that the market does not behave as a typical Bitcoin bull market does, Hayes said investors are likely to catch up with the trend in the next six to twelve months.
The BitMEX CEO commented on the Federal Reserve’s likely upcoming rate hike and said that irrespective of whether the central bank continues hiking rates or printing money, Bitcoin is likely to perform well.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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