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BitMEX co-founder Arthur Hayes said a mini financial crisis and supercharged inflation risk sending the price of bitcoin down to $30,000, and that he is preparing to “load” Solana (SOL) and Dogwifhat (WIF) ).
While the cryptocurrency market expects price gains after the Fed's likely rate cuts in March, Hayes predicts a mini financial crisis is coming.
“Once bitcoin drops below $35,000, I will start bottom fishing,” he said in his latest blog post, titled “Yellen or speaking.” “I will load Solana and Dogwifhat ($WIF).”
In the first quarter, the price of bitcoin will encounter multiple obstacles, including the conflict in the Red Sea between the United States and the Houthi rebels that will increase shipping costs, fueling an “increase in inflation in the third and fourth quarters of this year,” he said.
“Shout or talk?” It's an essay about why I think $btc The drop points to a mini financial crisis for TradFi, and it will bottom out in the $30,000 to $35,000 range.https://t.co/uwiLscKwzW pic.twitter.com/zRpUcE6TIz
—Arthur Hayes (@CryptoHayes) January 23, 2024
Looming crisis, no grayscale behind bitcoin crash
Hayes says the theory that it's Grayscale outflows that are causing bitcoin's decline is “false,” as net inflows into new bitcoin exchange-traded fund (ETF) products total more than 800 millions of dollars.
bitcoin also anticipates that the US Bank Term Financing Program (BTFP), used to support banks after the March 2023 crisis that saw several banks collapse, will not be renewed, Hayes said.
This tells me that they are planning not to renew the BTFP and hope that insolvent banks will use the discount window. Check out this stealth money printing program. It remains to be seen if a failed bank knocks on the window and its stock doesn't go bankrupt as a result. pic.twitter.com/BbUKlV4rbX
—Arthur Hayes (@CryptoHayes) January 18, 2024
“Cessing the BTFP will cause a mini financial crisis and force the Fed to stop talking and start Yellen with a rate cut, a QT taper, and/or a resumption of money printing through quantitative easing (QE),” he said. saying. “bitcoin price action tells me I'm right.”
What could be a slight increase in the inflation rate due to rising shipping costs could be boosted by rate cuts and the resumption of QE, Hayes added. “The market doesn't appreciate this fact yet, but bitcoin does,” he said.
Arthur Hayes ready to “load” SOL, WIF
Hayes says a bitcoin drop below the $35,000 mark would be a good entry point for investors looking to buy the dip. He added that it will also “load” SOL and WIF.
“Bonk is last cycle money, and if it ain't Wif Hat, it ain't shit,” he said.
Meme coin presales are also attracting a lot of attention recently, with Meme Kombat (MK) and Sponge V2 ($SPONGEV2) often ranking among the best tokens for exponential growth.
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