In line with the volatility of the cryptocurrency market, Bitcoin (BTC) price has experienced a series of fluctuations in the past few weeks. Despite renewed optimism, the top cryptocurrency has failed to hold above the $26,000 mark thanks to Grayscale’s recent victory over the U.S. Securities and Exchange Commission (SEC).
While many investors and cryptocurrency enthusiasts hope for a continued bull run for Bitcoin, some believe that the cryptocurrency is already in one. Arthur Hayes, co-founder and former CEO of BitMEX, said that as early as March 2023, Bitcoin has been in a bullish momentum, although the market “has not reacted yet.”
Arthur Hayes Claims Bitcoin Bull Run Since SVB Takeover
Arthur Hayes, Tuesday, September 5 In his keynote speech he said At Korea Blockchain Week, the Bitcoin bull run began on March 10, the day the Federal Deposit Insurance Corporation (FDIC) took over Silicon Valley Bank (SVB).
March, Bitcoinist reports The US banking industry is in crisis as SVB and other banks fail. In an effort to stabilize the industry and avoid further potential collapse, the Federal Reserve (Fed) launched the $25 billion Bank Term Funding Program (BTFP), which provides loans to banks for up to a year in exchange for “qualifying assets” as collateral.
Hayes said the Fed-led BFTP is essentially a backstop for the banking system, facilitating the exchange of “troubled assets” for freshly minted dollars. He also said the move was an “acknowledgment that the banking system is flawed and that one of the solutions is to print more money”.
Hayes claimed that the increased supply of dollars and shifts in monetary policy have prompted investors to consider assets with a fixed supply, such as Bitcoin. “We basically threw away the whole semblance that we cared about the value of the dollar and the value of any fiat currency,” he said.
Interestingly, BTC’s price performance over the past six months reinforces Arthur Hayes’ thesis of a sustained bull market. According to CoinGecko data, since March 10, the value of Bitcoin has increased by nearly 27%.
When will the broader cryptocurrency market catch on?
Arthur Hayes also mentioned in his speech that the rest of the market has notet reacted to these developments, but he expects to do so within the next 6 to 12 months.
Furthermore, the BitMEX co-founder claimed that even if the Federal Reserve and other central banks continue to “print more money or raise interest rates,” Bitcoin will be positive. Arthur Hayes says:
In both cases, whether the Fed raises or lowers rates, we as the cryptocurrency industry are in a good position.
As of this writing, Bitcoin is worth $25,732, reflecting a 0.1% price drop over the past 24 hours.According to the data Coin GeckoBTC remains the dominant cryptocurrency with a market cap of over $503 billion.
BTCUSDT trading beneath $26,000 | Source: daily BTCUSDT chart on TradingView
Featured image via Barron’s, chart via TradingView
