Crypto veteran Arthur Hayes is predicting that the Federal Reserve’s new Financial institution Time period Funding Program (BTFP) will finally set off a “hated” Bitcoin (BTC) rally.
The Fed’s BTFP affords loans of as much as one yr in size to banks pledging US Treasuries, company debt, mortgage-backed securities and different qualifying belongings as collateral.
In a latest weblog submit, Hayes says that BTFP primarily equates to “infinite cash printing,” which can possible increase danger belongings like Bitcoin and crypto.
“BTFP ushers in infinite cash printing … globally.
The following Bitcoin rally might be one of the hated ever. How can Bitcoin and the crypto markets generally rally sharply after all of the dangerous issues that occurred in 2022? Didn’t individuals be taught Bitcoin and people related to it are scumbags? Aren’t individuals afraid of the narrative that Bitcoin prompted the failure of enormous banks, and virtually consumed the US banking system?”
Hayes says that present macro circumstances imply that equities will typically 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 finished buying and selling [stocks.] What’s the purpose? I typically purchase and maintain and don’t commerce round my positions that steadily. If I consider what I wrote, then I’m signing myself up for underperformance. If there’s a short-term buying and selling alternative the place I feel 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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