BitMEX co-founder Arthur Hayes forecasts a massive Bitcoin (BTC) rally and a major turnaround from the world’s central banks.
Reacting to the news that the People’s Bank of China has lowered the Reserve Ratio Requirement (RRR) by 0.25%, Hayes says is targeting a price of $1 million for Bitcoin.
Hayes believes China’s move supports his thesis that more government intervention and capital injections are on the way.
The reserve rate requirement is the amount of reserves that a commercial bank must hold as a percentage of its deposits.
When the requirement is lowered, the amount commercial banks can lend or invest increases.
In a new essay on the subject, Hayes says that monetary policy easing is certainly on the way.
Focusing on the Federal Reserve’s recently created Bank Term Funding Program (BTFP), intended to ensure that banks honor all withdrawal requests from depositors, Hayes suggests that it will lead to a larger Bitcoin rally than measures. pandemic-related quantitative easing if the amount is something to go by.
“The Fed printed $4.189 trillion in response to COVID. From the beginning, the Fed implicitly printed $4.4 trillion with the implementation of BTFP.
During the COVID money printing episode, Bitcoin rose from $3,000 to $69,000. What will he do this time?
On how the projected mainstream Bitcoin and crypto rally is likely to be received in the future, Hayes says,
“The resulting Bitcoin rally will be one of the most hated in history. How can Bitcoin and the crypto markets in general bounce back strongly after all the bad things that happened in 2022?
People didn’t learn Bitcoin and those associated with it are scumbags? Aren’t people afraid of the narrative that Bitcoin caused big banks to fail and nearly consumed the US banking system?
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Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investment in Bitcoin, cryptocurrencies, or digital assets. Please note that your transfers and transactions are at your own risk, and any loss you may incur is your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, and The Daily Hodl is not an investment adviser. Please note that The Daily Hodl is involved in affiliate marketing.
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