Arthur Hayes Reveals Things That Make Bitcoin Prices Rise

Arthur Hayes reveals an upward trend in Bitcoin. (Photo; Doc. Slo Tech)

JAKARTA - Arthur Hayes, co-founder of BitMEX and former CEO, shared his views on the Bitcoin (BTC) upward trend that has lasted for more than six months. Although BTC has shown a significant rise, the market has not fully responded to this movement, according to Hayes.

In a speech at Korea Blockchain Week, Hayes explained that the BTC increase began when the Federal Deposit Insurance Corporation (FDIC) took over Silicon Valley Bank (SVB) on March 10. This period also witnessed other major banks such as Silvergate Bank and Signature Bank experiencing difficulties, forcing authorities to intervene.

In response, the Federal Reserve launched the Bank Term Funding Program (BTFP) worth IDR 382 trillion to stabilize the US banking system. According to Hayes, this action is actually an attempt to print more money as a solution to emerging banking system problems.

Since then, the price of Bitcoin has increased by about 26%, according to Hayes. However, he believes that the market may take another six to 12 months to fully respond to the increase.

Hayes also highlighted the shift in global perceptions of fiat currencies and the value of the dollar. He stated that trust in fiat currency is decreasing, and traders now tend to consider assets with fixed supplies like Bitcoin.

Interestingly, Hayes stated that the crypto industry is in a strong position regardless of interest rate policies that the Federal Reserve and other central banks may take.

According to him, Bitcoin is ready to perform well either if interest rates are raised or lowered. Thus, Hayes' view reflects confidence in Bitcoin's potential growth and stability in a changing economic environment.