BTC bull market began in March, more will realize in a year: Arthur Hayes

Bitcoin (BTC) has been on a bull run for the previous six months approximately and the marketplace is yet to react– however it will in around six to 12 months, according to BitMEX co-founder and former CEO Arthur Hayes.In a Sept. 5 keynote speech at Korea Blockchain Week, Hayes argued Bitcoins bull run started on March 10, the day Silicon Valley Bank (SVB) was taken over by the Federal Deposit Insurance Corporation.Two days prior to SVBs takeover on March 8, Silvergate Bank had entered into liquidation. Two days in the future March 12, Signature Bank was required to nearby New York regulators. In action, and in a quote to stop more possible collapses, the Federal Reserve created the Bank Term Funding Program (BTFP)– providing banking loans of approximately a year in return for them publishing “certifying possessions” as collateral.Hayes speaking at Korea Blockchain Week in Seoul. Source: Andrew Fenton/Cointelegraph” Essentially, what [the Fed] did was backstop the entire banking system by saying: Please offer me your undersea dogshit bonds and Ill give you fresh dollars,” Hayes said.” Me and the rest of the marketplace appropriately saw through this as basically them admitting that they triggered this issue– the structure of the banking system– and this is one of the ways you can fix it which is: Print more cash.” He stated because then, Bitcoins price has been up– presently around 26%– which is why he declares the booming market started that day.” We generally dumped this entire facade that we care about the value of the dollar and the value of any fiat currency.” This pressed traders to think about fixed-supply properties such as Bitcoin, Hayes declared. Related: Why is Jerome Powell gaslighting us about the odds of recession?However, the remainder of the market hasnt yet responded, however he gave a timeline of in between six to 12 months for that to occur.Hayes said even if the Fed and other central banks continued rate of interest walkings to make it possible for economic tightening or if they “print more money” then Bitcoin would still perform well.” On both scenarios, whether the Fed raises or cuts, we remain in a great position as the cryptocurrency market,” he said.Magazine: How to safeguard your crypto in an unstable market– Bitcoin OGs and professionals weigh in

Other Questions People Ask

What does Arthur Hayes say about the BTC bull market that began in March?

Arthur Hayes asserts that the BTC bull market commenced on March 10, coinciding with the Federal Deposit Insurance Corporation's takeover of Silicon Valley Bank. He believes this event marked a significant shift in market sentiment, as traders began to seek fixed-supply assets like Bitcoin due to concerns over fiat currency stability. Hayes notes that since that date, Bitcoin's price has risen approximately 26%, reinforcing his claim about the bull market's initiation.

How long does Arthur Hayes predict it will take for the market to realize the BTC bull market began in March?

Hayes predicts that the broader market will take between six to twelve months to fully recognize the implications of the BTC bull market that began in March. He emphasizes that while Bitcoin has already shown significant price appreciation, the overall market reaction is still pending. This delayed realization could be influenced by ongoing economic conditions and central bank policies.

What impact did the Federal Reserve's actions have on the BTC bull market that started in March?

The Federal Reserve's creation of the Bank Term Funding Program (BTFP) in response to banking instability is seen by Hayes as a catalyst for the BTC bull market. By effectively backstopping the banking system and allowing banks to exchange underperforming assets for cash, the Fed inadvertently prompted traders to consider Bitcoin as a more stable investment. Hayes argues that this shift in focus towards fixed-supply assets is a key factor driving Bitcoin's price increase since March.

What are the potential scenarios for Bitcoin's performance according to Arthur Hayes?

Arthur Hayes suggests that regardless of whether the Federal Reserve continues to raise interest rates or opts to print more money, Bitcoin is positioned to perform well. He believes that both scenarios will lead to increased interest in cryptocurrencies, as they offer an alternative to traditional fiat currencies. This resilience in Bitcoin's value is part of what Hayes sees as a long-term bullish outlook for the cryptocurrency market.

Why does Arthur Hayes believe traders are shifting their focus to Bitcoin?

Hayes argues that the recent turmoil in the banking sector has led traders to reassess their investment strategies, prompting a shift towards Bitcoin and other fixed-supply assets. The perception that central banks are willing to print more money undermines confidence in fiat currencies, making Bitcoin an attractive alternative. This change in mindset is crucial for understanding why Hayes believes the BTC bull market began in March and will continue to gain traction over time.