Crypto veteran Arthur Hayes is predicting that the Federal Reserve’s new Financial institution Time period Funding Program (BTFP) will in the end set off a “hated” Bitcoin (BTC) rally.
The Fed’s BTFP provides loans of as much as one 12 months in size to banks pledging US Treasuries, company debt, mortgage-backed securities and different qualifying belongings as collateral.
In a current weblog put up, Hayes says that BTFP primarily equates to “infinite cash printing,” which can doubtless increase danger belongings like Bitcoin and crypto.
“BTFP ushers in infinite cash printing … globally.
The following Bitcoin rally will probably be one of the crucial hated ever. How can Bitcoin and the crypto markets basically rally sharply after all of the unhealthy issues that occurred in 2022? Didn’t folks study Bitcoin and people related to it are scumbags? Aren’t folks afraid of the narrative that Bitcoin brought about the failure of enormous banks, and nearly consumed the US banking system?”
Hayes says that present macro circumstances imply that equities will usually lag behind the extra risky crypto belongings. The crypto billionaire additionally says he’s set to liquidate nearly all of his inventory positions and allocate it into Bitcoin or digital belongings.
“For me and my portfolio, I’m largely performed buying and selling [stocks.] What’s the purpose? I usually purchase and maintain and don’t commerce round my positions that often. If I imagine what I wrote, then I’m signing myself up for underperformance. If there’s a short-term buying and selling alternative the place I believe I can earn some fast fiat duckets after which take my revenue and purchase extra Bitcoin, I’ll do it. In any other case, I’m liquidating most of my inventory portfolio and transferring it into crypto.”
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