Tanya Abrosimova
Independent Analyst
- Arthur Hayes, the CEO of BitMEX, says monetary easing will become a catalyst for Bitcoin growth.
- Quantitative easing around the globe will make cryptocurrencies more attractive.
Monetary policy of the world’s largest central bank will drive Bitcoin’s price towards $20,000, Arthur Hayes, the CEO of BitMEX believes.
The head of the platform that allows trading digital assets with 100x leverage is very optimistic about Bitcoin’s future, saying that quantitative easing religion practiced by the FED and all major centrral banks around the globe will eventually facilitate Bitcoin’s mass adoption.
"QE4eva is coming. Once the Fed gets religion again, get ready for #bitcoin $20,000,” he tweeted recently, commenting the news about the recent growth of the effective interest rate.
Basically, the central bank is losing control over rates pumping the economy with newly-printed money and creating inflationary pressure. Moreover, the regulators of the emerging markets also jump the monetary easing bandwagon, creating the case for Bitcoin price growth.
Thus, the People’s Bank of China (PBoC) is expected to launch easing policies.
“All other indicators show there is a strong case to cut rates, including real economic activity data yesterday which was a confirmation of downside risks. Looking forward, if a large part of U.S. tariffs increases become effective, the downside risks are even bigger,” Ding Shuang, chief economist at Standard Chartered, told in the interview with Reuters.
Considering an innate deflatory feature of Bitcoin, it is bound to become more attractive in the environment of irresponsible monetary and fiscal policies, Travis Kling, a former portfolio manager at a leading Wall Street fund added.
At the time of writing, BTC/USD is changing hands at $10,220, mostly unchanged both on a day-on-day basis and since the beginning of Wednesday.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.