Bitcoin price rally likely in around six to twelve months: Arthur Hayes
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- Bitcoin bull market started in March with the collapse of the Silicon Valley Bank, according to Arthur Hayes.
- The former BitMex CEO says that the Federal Reserve’s $25 billion program to revive the US banking system pushed traders towards Bitcoin.
- Hayes gives a timeline of six to twelve months for the market to respond to the ongoing Bitcoin bull market.
Bitcoin price is up 26% year-to-date. This rally likely originated on March 10 and is likely to continue in the next six to twelve months, former BitMEX CEO Arthur Hayes said Tuesday in a speech at the Korea Blockchain Week, according to a Cointelegraph report.
Contrary to popular belief in the crypto community, Hayes said that the Federal Reserve’s injection of liquidity in the US banking system in March kicked off the BTC bull run.
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Bitcoin bull run likely kicked off after Silicon Valley Bank collapse
Arthur Hayes addressed the audience at Korea Blockchain Week and said that the Bitcoin bull market started on March 10, when the Federal Deposit Insurance Corporation took over Silicon Valley Bank (SVB).
Hayes said that the Federal Reserve announced its $25 billion Bank Term Funding Program (BTFP) in response to SVB’s collapse. Through this program, the US central bank offered loans of up to a year in return for banks posting “qualifying assets” as a collateral.
According to Hayes, this program was a turning point as the Federal Reserve’s liquidity injection made investors turn to fixed-supply assets like Bitcoin.
Bitcoin price has yielded 26% gains, since the beginning of 2023. While traders might argue that the market does not behave as a typical Bitcoin bull market does, Hayes said investors are likely to catch up with the trend in the next six to twelve months.
The BitMEX CEO commented on the Federal Reserve’s likely upcoming rate hike and said that irrespective of whether the central bank continues hiking rates or printing money, Bitcoin is likely to perform well.
