Bitcoin (BTC) and altcoins are a no-brainer investment in the current macro environment, says Arthur Hayes.
in post On December 14th at
Bitcoin worth $1 million still in operation in 2024, “a turning point”
Hayes argues that buying cryptocurrencies is key to success as the market is betting that the US Federal Reserve will cut interest rates next year.
At the December 13 Federal Open Market Committee (FOMC) meeting, Federal Reserve policymakers voted to maintain a freeze on interest rate increases.
As was widely expected, subsequent speeches and news conferences with Chairman Jerome Powell sparked talk of an imminent rate cut, said to be a “pivot” for policy.
“While we believe it is likely that our policy rates will remain at or near their highs during the tightening cycle, the economy has surprised forecasters in many ways since the pandemic and continued progress toward our 2% inflation target is not guaranteed,” Powell said. .
As a result, market consensus has begun to diverge on what will happen at the next FOMC meeting in January. The odds of a rate cut in early 2024 were 18.6% at the time of writing, according to data from CME Group’s FedWatch Tool.
Since the Fed’s decision date, mainstream media has focused on growing optimism that U.S. monetary policy will begin to unwind after an unprecedented cycle of interest rate tightening.
In reposting one such story, Hayes gave no thought to what the knock-on effects might be for liquidity-sensitive cryptocurrencies.
His post stated: “There is no excuse not to be long crypto at this point.”
“How many times do they have to tell you that the currency in your pocket is dirty trash?”
Hayes has long reiterated his $1 million BTC price prediction as macro trends have driven the country’s currency down.
BTC price drops $1,500 due to ledger security issues
After seeing sharp volatility at the opening of the day on Wall Street, BTC/USD was trading around $42,500 at the time of this writing, according to data from Cointelegraph Markets Pro and TradingView.
Related: Bitcoin Bulls Eyes BTC Price Returns As Late 2020 Cash Inflows Are Reflected
This wiped out gains seen overnight and was a rebound from a 7.5% drop earlier in the week, which was Bitcoin’s biggest one-day decline of 2023 so far.
The move comes amid news of a security compromise affecting decentralized applications, or DApps, using the hardware wallet Ledger’s connector functionality.
“Someone had a lot of fun liquidating $BTC long before the price inevitably came back down,” said Scott Melker, trader, analyst, and podcast host. reacted.
Total BTC long liquidation remained at just over $20 million as of December 14, according to the latest figures from statistics resource CoinGlass. This is just a fraction of the December 11 tally of $126 million.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.