In a new interview on the “What Bitcoin Did” podcast, BitMEX founder Arthur Hayes said that the macro environment is starting to look favorable for Bitcoin (BTC).
Hayes said that the US government is likely to wait until the last moment to raise the debt ceiling, which could lead to financial disruptions in the coming months.
He also said that the issuance of fresh liquidity to fund the US government’s debt could provide the catalysts for a burst to the upside for Bitcoin.
“It’s gonna be interesting, the timing of that, because is that going to coincide with sort of like the fall harvest cycle, when we usually get financial disruption events, with the banking crisis then, you have the federal government issuing trillions of dollars of debt because they need to fund themselves?
You’re basically putting this powder keg together of a situation that’s going to be exploding in Q3 and Q4 this year, and I think ultimately it will be good for Bitcoin.”
Hayes’s comments come as Bitcoin is trading at around $30,000. The cryptocurrency has been on a downward trend since reaching an all-time high of $69,000 in November 2021. However, some analysts believe that Bitcoin could be poised for a rebound in the coming months.
“Bitcoin is currently trading at a significant discount to its all-time high,” said Mike Novogratz, CEO of Galaxy Digital. “I believe that this discount will narrow in the coming months as investors begin to realize the long-term potential of Bitcoin.”
Sophia Hernandez is an experienced crypto writer who has been writing about crypto and blockchain technology for 3 years. She has a deep understanding of the complexities of the crypto market and is skilled at breaking down these concepts into easy-to-understand language for readers.
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