Buy the F *** Ing Pivot: Arthur Hayes about bank rescues and bitcoins Endgame

Buy the F *** Ing Pivot: Arthur Hayes about bank rescues and bitcoins Endgame

Bitmex co-founder and crypto-essayist Arthur Hayes published a long blog post on Thursday, in which he teased the new program of the Federal Reserve to protect the banking system-and what it means for Bitcoin.

The initiative entitled "Bank Term Funding Program" is viewed by Hayes as a "repacked" form of Yield Curve Control (YCC), which will trigger another bull market for Bitcoin.

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hay began by checking the macroeconomic background since 2020 2022. The subsequent crisis in the financial investments pressed the bankers bond portfolios, and a higher FED find sentence led to a quick deduction of deposits from small banks to higher extensive money market funds.

This forced these smaller banks, the US state bonds and mortgage-proof securities in their balance sheets with a realized loss-something that forced a banking storm Silicon-Valley-Bank Style = "Font-Weight: 400"> earlier this month.

In order to contain the infection in connection with the collapse of the SVB, the Federal Reserve saved all the bank insertion and also announced Bank Term Funding Program (BTFD) to supply US banks with liquidity.

The program enables every state-insisted deposit institute, government bonds and mortgage-secured securities to be used as security in order to borrow unlimited money-with a collateral evaluation to the nominal value and not to the current market value.

According to Hayes, this implicitly enables $ 4.4 trillion in the US economy-even more than the covid stimulus, which was worth $ 4.189. "During the Covid money print episode, Bitcoin rose from $ 3,000 to $ 69,000," he noted.

Hayes also predicted that the US dollar will probably get even stronger compared to other currencies, since the USA has created a precedent by guaranteeing insertional funds within system-relevant US banks. In order to prevent banks from fleeing interludes in other countries, the central banks are forced to provide similar insertion guarantees worldwide.

While the Fed's new program should only last a year, Hayes does not believe that the central bank will hold on to March 2024.

"given the fact that the Fed has no stomach for the free market in which banks fail due to poor management decisions, the Fed can never pick up its deposit protection," he wrote. "Long live btfp."

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money prints is usually seen as bullish for all financial systems, including Bitcoin, which experienced a historical rally from March 2020 to November 2021, while the Fed's key interest rate was only 0.25. BTFP, according to Hayes, "initiates the printing of infinite money", which means that Bitcoin will rise again.

However, it will be a hated rally: the media, he argued, will try to blame the crypto industry for banking consequences and be confused about how Bitcoin will continue to skyrocket despite the slaughter in the mainstream finance world.

Some politicians even claimed that the closure of the crypto-friendly signature bank by the government at the beginning of this month a " strong anti-crypto message " protect.

"Instead, crypto once again showed that the smoke detector is for the rancid, lavish, fiat-driven western financial system," wrote Hayes.

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