Hayes believes that it may take the market another six to 12 months to fully respond to the bull run.
BitMEX co-founder and former CEO Arthur Hayes has shared an eye-opener about Bitcoin (BTC) that may have flown over the heads of many industry participants. According to him, BTC has been on a bull run for about six months or so. However, the market is yet to react, he added.
Arthur Hayes Says Market Will Soon Respond to BTC Bull Run
Sharing his thoughts in a keynote speech at the Korea Blockchain Week, Hayes said the bull run began when the Federal Deposit Insurance Corporation (FDIC) took over Silicon Valley Bank (SVB). That was on March 10. The same period also saw other prominent financial institutions such as Silvergate Bank and Signature Bank collapse, necessitating the need for authorities to step in.
To this end, the Federal Reserve floated a $25 billion program called the Bank Term Funding Program (BTFP). The BTFP, as it were, was aimed at stabilizing the US banking system.
According to Hayes, the Fed realized that the problem lay with the whole banking system, and thought a good fix was to print more money. And so it did.
Since that moment, Bitcoin price has been up – at least by 26%, he concluded. Hayes also believes that it may take the market another six to 12 months to fully respond to the run.
He says the world no longer believes in the over-bloated idea of caring about the value of the dollar or that of any fiat currency. And so, traders are now pushed to consider fixed-supply assets such as Bitcoin, he added.
In another interesting submission, Hayes shared that the crypto industry has found itself in a good position. That is regarding whether the Fed and other central banks decide to hike or cut down on interest rates. Per Hayes, whatever course of action the Fed takes, Bitcoin is poised to perform well.
“On both scenarios, whether the Fed raises or cuts, we are in a good position as the cryptocurrency industry,” said he.