Arthur Hayes from BitMEX notes that the 2023 U.S. banking crisis was a key catalyst for bitcoin's bull run. Bitcoin's rally shows no signs of slowing as it approaches $90,000.
Bitcoin Surpasses $85,000 Milestone
On November 11, bitcoin’s price broke past the record $85,000 mark, which turned out to be a brief checkpoint. This morning, bitcoin trades at $88,879, marking over a 29% gain in the past week. This nearly 30% weekly increase stands as bitcoin’s best seven-day performance since the 2023 U.S. banking crisis.
U.S. Banking Crisis as a Catalyst for Bitcoin’s Growth
The U.S. banking sector faced disruptions in March 2023 due to the collapse of Silicon Valley Bank, the voluntary liquidation of Silvergate Bank, and the forced closure of Signature Bank by New York regulators. This upheaval contributed significantly to bitcoin’s growth, with Hayes attributing the event as the birth of bitcoin’s bullish momentum.
Bitcoin Heading Towards $1 Million Amid Trump’s Economic Policies
Bitcoin has been on a tear since Donald Trump’s 2024 U.S. election victory, which sparked increased risk appetite among investors who anticipate crypto-friendly regulation and a boost for innovation. Arthur Hayes recently suggested that Trump’s economic approach could propel bitcoin beyond the $1 million mark:
“Reducing the debt-to-GDP ratio from 132% to 115% required $4 trillion. If the U.S. aimed for a reduction to 70%, the ratio seen in 2008, it would require creating $10.5 trillion in credit. This liquidity could push bitcoin to $1 million, as prices are set at market edges.”
Increasing Demand for Bitcoin as a Safe Haven
Hayes also pointed out that the growing credit levels in the U.S. will drive more investors toward safe assets like bitcoin:
“With bitcoin’s available supply shrinking, the largest amount of fiat money in history will seek refuge not only from Americans but also from investors in China, Japan, and Western Europe. Hold on to bitcoin and stay long.”
Quantitative Easing and Its Impact on Bitcoin
Quantitative easing is a monetary policy where a central bank purchases a large volume of government bonds to stimulate the economy. Liquidity injections from central banks often drive bitcoin prices up as investors seek higher returns in alternative assets, which favors bitcoin.
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