Key Points
- Bitcoin [BTC] could experience a bullish breakout as central banks begin cutting interest rates, according to BitMEX founder, Arthur Hayes.
- The Federal Reserve’s meeting on 12th June could help determine the next BTC price direction.
Arthur Hayes, the founder of BitMEX and CIO of Maelstrom, predicts a potential bullish breakout for Bitcoin (BTC) as central banks worldwide begin to cut interest rates.
Hayes had initially projected this breakout to occur in August, but recent rate cuts by the European Central Bank (ECB) and the Bank of Canada (BOC) have led him to revise his forecast.
Central Bank ‘Easing Cycles’
According to Hayes, these rate cuts signify the beginning of ‘easing cycles’ by central banks. He believes that the US will be compelled to follow suit.
This shift in the macro landscape has led Hayes to advise investors to “Go long Bitcoin and subsequently sh*tcoins.”
BTC has maintained a value above $70K for two consecutive days and may approach $72K or its March All-Time High (ATH) if key macro events in the coming days are favorable.
The Federal Reserve’s meeting on the 12th of June is anticipated to provide a clearer direction for Bitcoin’s price.
Market Predictions and Reactions
Quinn Thompson, the founder of crypto hedge fund Lekker Capital, stated that the market needs assurance that Powell will cut rates in July.
However, Hayes suggests that even if the Fed does not immediately cut rates, the US’s measures to mitigate the drastic fall in the value of the Japanese Yen could result in an increased money supply, leading to a similar outcome.
The increase in the US money supply is expected to boost BTC and other risk assets, according to most analysts.
Meanwhile, BTC Open Interest rates have reached a record high, indicating a significant influx of liquidity into the cryptocurrency.
This spike in Open Interest rates is seen as a bullish sign for Bitcoin. The Federal Reserve’s decision next week could provide further momentum and direction for the cryptocurrency.
