The US debt crisis could boost bitcoin – The Blockchain Cafe

min read by
Luc Jose A.

As the maturity of the American debt approaches, analyses, predictions and speculations multiply. Very well known in the cryptocurrency industry, Arthur Hayes also lent himself to the exercise. The BitMEX founder who currently runs Maelstrom Capital, predicts rocky times for financial markets and a rise in bitcoin.

A strategy unique to lawmakers and well known to Arthur Hayes

After predicting bitcoin at $1 million earlier this month, crypto expert Arthur Hayes spoke further about the future of bitcoin and the issue of US debt, in his recent interview for the podcast “What Bitcoin Did”. To manage the debt maturity crisis, the analyst thinks the government will resort to a strategy of its own.

This consists of waiting until the last moment before raising the limit. “Usually what happens is they delay, delay, delay,… Then, you know, they come on the date… The market starts to crash, and then they make a religion And [disent] ”Okay, yes, of course, we will just raise the debt ceiling,” affirmed Arthur Hayes.

The entrepreneur also thinks that politicians are profiting from the debt ceiling crisis. They use the situation to make deals that suit them. “The Republicans are probably going to get the Democrats to make a concession on a particular point of policy that they think is important for the next election, and then, at the last minute, they will come to an agreement and raise the tax rate by one. symbolic amount, and everyone will be happy again,” he said in his interview.

An increasingly favorable macroeconomic environment for bitcoin

Arthur Hayes also lent himself to an analysis on the future of bitcoin (BTC). The crypto guru sees an increasingly favorable macro environment for bitcoin to rise.

Issuance of new cash to pay off government debt, raising the debt limit, and any financial disruptions that may be expected are all factors supporting a rise in bitcoin, according to Hayes.

“It will be interesting, the timing, because is it going to coincide with some sort of fall harvest cycle, when we usually have financial disruption events, with the banking crisis, you have the federal government that issues billions of dollars of debt because it needs funding? It’s actually a powder keg that’s going to explode in the third and fourth quarters of this year, and I think ultimately it’s going to be good for bitcoin,” he said in conclusion.

In sum, Arthur Hayes predicts a bright future for bitcoin in the face of the US debt crisis. According to the expert, the queen of cryptos could benefit from the current macroeconomic environment.

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Luc Jose A. avatar

Luc Jose A.

A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of the blockchain to transform many sectors of the economy, I took the commitment to raise awareness and inform the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand the blockchain and seize the opportunities it offers. I strive every day to provide an objective analysis of the news, to decipher market trends, to relay the latest technological innovations and to put into perspective the economic and societal challenges of this revolution in progress.

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