BitMEX founder Arthur Hayes believes that Bitcoin (btc) the bull market will reignite after an event unfolds.
There is says his 395,700 followers on social media platform
One sign that the Federal Reserve will need to pivot and shore up the U.S. economy is a worrying pattern forming in the bond market, according to Hayes.
It says long-term bond interest rates are rising faster than short-term bond interest rates, a phenomenon known as "bearish steepening." This yield curve pattern is usually a bearish signal for stocks and risk assets.
โThe faster this bear trend increases, the faster someone goes bankrupt, the faster everyone recognizes that there is no other way out than printing money to save the government bond markets, the faster we return to the cryptocurrency bull market. The Lord is my Shepherd, I will lack nothing.โ
According to Hayes, the growing The 2s30s curve โ which is the difference between the 30-year yield and the 2-year yield โ and the Fed's hawkish stance are major to a turning point in the American economy.
โDue to the leverage and non-linear risks inherent in banks' portfolios, they will sell bonds or pay flat taxes to the IRS as rates rise. โMore sales lead to more sales, which is not good for bond prices.โ
The Federal Reserve began a series of interest rate hikes in March 2022, which reduced liquidity in financial markets and hurt risk assets like Bitcoin.
Bitcoin is trading at $27,483 at the time of writing, up 0.2% in the last 24 hours.
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Disclaimer: The opinions expressed on The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrencies, or digital assets. Please note that your transfers and trading are at your own risk and any losses you may incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is it an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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