BitMEX Founder Predicts Mild Bitcoin Losses, Highlights Benefits of Interest Income

Updated: 9 months

• BitMEX Founder Arthur Hayes has shared his outlook for Bitcoin amid a market downturn.
• He believes that BTC will experience mild losses of less than 5%.
• He suggests that an influx of interest income earned on US government paper could benefit Bitcoin and other crypto assets.

BitMEX Founder’s Outlook for Bitcoin

BitMEX founder and crypto veteran Arthur Hayes has detailed his outlook for the future of Bitcoin (BTC) amidst a market downturn. In a recent blog post, Hayes predicts that the premier cryptocurrency will only experience mild losses of less than 5%.

Benefits from Interest Income

Hayes suggests that crypto assets may benefit from the influx of interest income earned on US government paper. He further states that this money needs to be invested somewhere, and some of it may find its way into tech stocks and cryptocurrencies. Despite the “apocalyptic” mood in mainstream financial media, Hayes is confident that investors will understand the benefits of investing in finite-supply financial assets like crypto.

Impact of Federal Reserve Moves

The co-founder also claims that moves by the Federal Reserve to address liquidity pressures facing US banks have positive implications for risk assets such as crypto and tech stocks. According to him, this is because bitcoin serves as an antidote for a broken banking system; therefore, as more people realize this value proposition, its price in fiat currency terms should increase even more.

Bitcoin Price Predictions

In conclusion, Hayes predicts that Bitcoin prices are likely to remain around $25k during Q3 2020 before seeing potential increases due to increased fiat liquidity and an influx of interested income into tech stocks and cryptocurrencies. Additionally, he estimates that as long as the Fed continues its current path, both tech stocks and cryptos should continue their upwards trajectory.

Conclusion

Overall, while some commentators believe we are heading towards a sharp correction in crypto prices due to economic uncertainty caused by COVID-19 pandemic, Arthur Hayes remains optimistic about Bitcoin’s prospects due to its finite supply coupled with increased fiat liquidity which could result in an uptick in interest income being invested into riskier assets such as cryptos.

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