Bitcoin ETFs Not The Cause of Bitcoin's Price Rise; Arthur Hayes
BitMEX's Arthur Hayes says U.S. military spending, not ETFs, boost Bitcoin. He links crypto's rise to global events and sees gold and Bitcoin as safe havens.
BitMEX's co-founder, Arthur Hayes, believes the recent crypto boom is linked to U.S. foreign policy, not Bitcoin ETF hopes.
In his Oct. 24 essay, The Periphery, Hayes points to U.S. support for Israel's conflict with Hamas as a reason for the crypto rise. He predicts the U.S. military budget will grow due to global events, leading to more borrowing. This, in turn, can waste vast sums of money.
Hayes mentions that big investors are moving away from bonds, expecting more U.S. spending. They're searching for new places to put their money. "If U.S. bonds aren't safe, investors will look elsewhere," Hayes said. He thinks they'll turn to gold and, importantly, Bitcoin, fearing global wartime inflation.
Bitcoin's value jumped 19.5% in a week. Many thought it was because of BlackRock's Bitcoin ETF application. But Hayes sees the situation differently. He also highlights that gold's value increased 8.6% since Gaza's conflict began, with the current price being $1,975 per ounce.
