BitMex bitcoin and cryptocurrency stock market founder and well-known entrepreneur Arthur Hayes shared his new thoughts and expectations amid the challenging macroeconomic situation in the United States.
According to Hayes, market participants should keep a close eye on the Japanese yen and Euro exchange rates.
The fall of the euro means that European companies and consumers will pay more for the goods and services they import. Energy is one of them. The same goes for the Japanese yen.
Arthur Hayes Gives Critical Levels For The Fed And Bitcoin
The cryptocurrency expert said that if the dollar continues to strengthen against these currencies, the FED may resort to intervention.
Hayes marked 1.5 yen and more for 1 dollar and 90 euro cents or less for 1 dollar as key points.
Must watch: The JPY and EUR.
Expect an “intervention” to weaken the USD if JPY > 150 and or EUR < 0.90.
“Intervention” means the Fed printing money.
printing money means $BTC number go up.
The situation is fluid. pic.twitter.com/jT0Mrgspjz
— Arthur Hayes (@CryptoHayes) July 14, 2022
According to Hayes, one of the Fed’s intervention options could be to print money.
According to Hayes, the regulator will need to return to this monetary policy in order to bring down record inflation in the US, mitigate the inevitable recession, and ultimately save the economy.
Hayes claimed that if money printing rises again in the US, it could mean a price increase for Bitcoin.
But the question of whether this will definitely happen is still unanswered. According to Arthur Hayes, the situation is volatile and requires more observation.
The FED went to one of the biggest interest rate hikes in recent times due to rising inflation in the USA. It is said that the FED may increase even 100 basis points in the next rate hike.
*Not investment advice.