Arthur Hayes stressed that the decline in the value of the first cryptocurrency will occur before the meeting of the US Federal Reserve System (FRS) on September 18. According to the crypto enthusiast, US Treasury Secretary Janet Yellen must act quickly to stop problems in the banking and housing sectors of the economy and not provoke a deterioration in the mood of voters.
The amount of money injections into the American economy should be large if the Federal Reserve starts cutting rates. Such monetary actions will be positive for cryptocurrencies, especially for Bitcoin, the entrepreneur noted:
“Interventions are likely to begin in late September, with the US Treasury Department scaling up spending and instructing the Fed to begin quantitative easing.”
According to the investor, Bitcoin is the most sensitive to changes in dollar liquidity, which is why it jumped to $64,000 during the announcement of the Fed’s reversal, and then fell by 10% over the next week against the backdrop of the growth of the balance of Treasury securities to $120 billion.
Earlier, Arthur Hayes compared the effects of the Federal Reserve’s interest rate cut on the US economy to a “sugar high” that could cause a ripple effect and a short-term upward rally in the crypto market.
Source: Bits
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