The rate of the first cryptocurrency may be adjusted to $50,000, altcoins – to become even cheaper. That’s the forecast presented ex-CEO of BitMEX Arthur Hayes.
According to him, such a scenario will be relevant before the meeting. Fed in September.
The situation on the money market, where yields on reverse repo transactions o/n with the Central Bank remain higher than with US Treasury bills.
The growing balance of reverse repo transactions sterilizes money because it sits idle on the Fed’s balance sheet, unable to be reused in the global financial system, he added.
The former BitMEX CEO pointed out the risks of the US 10-year Treasury yields rising to the “danger line” of 5% per annum in the context of monetary easing and the continued high budget deficit. This is fraught with problems in the banking and housing sectors and, as a result, could affect the mood of voters.
In such circumstances, according to Hayes, US Treasury Secretary Janet Yellen will do everything to ensure the victory of her Democratic Party ally Kamala Harris in the upcoming presidential elections in November. To do this, the official may sharply increase spending from the account of the department under her control, as well as instruct Fed Chairman Jerome Poell to stop QT and maybe start QE.
Hayes said Yellen must act quickly or the situation could escalate into a full-blown crisis of voter confidence in the U.S. economy.
According to the expert, if such a scenario is realized, interventions will begin at the end of September. Until then, Bitcoin will at best continue to fall, and altcoins may sink even deeper “into the gutter.”
Bitfinex allowed the price of the first cryptocurrency to fall to $40,000.
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Source: Cryptocurrency
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