BitMEX Founder Arthur Hayes Bitcoin to Crash the Party – Outperforming Bonds During War Times, Despite Initial Sell-Off!

Why BitMEX Founder Arthur Hayes Believes Bitcoin Will Beat Bonds in Times of War, Even if There is an Initial Sell-Off

BitMEX founder Arthur Hayes believes that Bitcoin will be the star performer during times of war, even if there’s an initial sell-off. It’s like attending a poker game and betting recklessly on Bitcoin, confident that you hold the ultimate Royal Flush.

In a recent Blocking.Net post, Hayes shared his thoughts on the dollar liquidity indicators, RRP (Reverse Repo), and TGA (Treasury General Account). These indicators help him gauge market conditions and make strategic adjustments in T-bill sales and Bitcoin purchases. But Hayes, being the wise and nimble investor that he is, knows that even the best-laid plans can crumble like a freshly baked cookie in the face of unforeseen circumstances.

Price of Oil and War in Middle East Are Ultimate Wildcards

Hayes recognizes that global events are as unpredictable as a chameleon playing hide-and-seek. And the ultimate wildcards in this game are the price of oil and the ongoing conflicts, like the never-ending soap opera between Hamas and Israel. If Iran jumps into the fray, we could witness oil supply disruptions that would make the Federal Reserve (Fed) dance salsa while wearing rollerblades.

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To combat this, the Fed might need to pull off a power move and increase interest rates to counter the soaring oil prices. On the other hand, a war-induced recession and surging energy costs could give the Fed a reason to lower interest rates. It’s a seesaw battle that could initially send Bitcoin tumbling like an elephant on a tightrope. But fear not, my fellow crypto enthusiasts, history has shown that Bitcoin knows how to outperform bonds in times of warfare.

Hayes declares, with the confidence of a cowboy strutting into the saloon, that he’ll buy those Bitcoin dips, even if the uncertainty momentarily clouds the market like a swarm of angry bees.

Hayes Believes Yellen’s Efforts to Manage RRR Will be Temporary

Hayes couldn’t resist throwing in some commentary about the actions of US Treasury Secretary Janet Yellen. He sees her efforts to manage the RRP drawdown as a temporary fix, akin to slapping a band-aid on a leaky dam. According to Hayes, the concerns floating around the US Treasury market, causing wild yield spread fluctuations, will resurface and put immense pressure on the financial system.

In his opinion, Bitcoin will once again take on the role of a real-time indicator, like a fortune-telling crystal ball, revealing the true health of the war-time fiat financial system. Oh Janet Yellen, you may try to tame the raging bull, but it’s a beast that cannot be tamed easily.

With a touch of cynicism, Hayes mentions the possibility of peace and global harmony being embraced by those in power. But let’s face it, folks, we’re talking about the perpetual cycle of war here. Since the birth of the United States in 1776, war has been a never-ending melody playing in the background – a somber tune that drowns out any hopeful melodies of peace in the future.

As reported, Hayes firmly believes that the recent rally in the crypto market is not solely driven by the anticipation of a Bitcoin (BTC) ETF. He points out the unwavering commitment of U.S. President Joe Biden to support Israel’s war effort, along with the skyrocketing military budget and increased government borrowing. These factors fuel concerns about global wartime inflation that could make budgets bleed and capital vanish like magic.

“This will increase future government borrowing, and the sky’s the limit when it comes to the sums of capital a war can waste,” the crypto veteran wrote.

So, my fellow investors, buckle up and hold on tight. The war drums are beating, and the crypto market is bracing itself for an exhilarating rollercoaster ride. Remember, in the world of investing, fortune favors the bold. And when it comes to Bitcoin, hey, it’s the ultimate wartime superhero. Now go out there, stay nimble, and seize those opportunities like a fearless bounty hunter chasing after a digitally encrypted treasure.

What are your thoughts on Bitcoin’s performance during times of war? Do you believe it can outshine bonds? Share your opinion in the comments below!

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