• Bitcoin’s price has increased by 30% since the beginning of the 2023, surpassing $23,000.
• The recent rally in the alpha coin was triggered by a decline in the U.S. Consumer Price Index, indicating a likely deceleration in interest rate hikes.
• Arthur Hayes, former BitMex big boss, claims in a new treatise on U.S. macroeconomic policy that a “disastrous global financial crisis” could be poised to submerge BTC and the crypto market.
The cryptocurrency market has been abuzz with speculation and excitement since the price of Bitcoin experienced a major surge in recent months. After dipping below $16,000 late last year, Bitcoin’s price has increased by an impressive 30% since the beginning of the 2023, surpassing $23,000. This unprecedented rally has left many financial gurus wondering what could possibly be driving the cryptocurrency market.
Recent figures from the U.S. Bureau of Labor Statistics suggest that inflation has been on a steady decline since mid-2022 and is currently sitting at a much more desirable rate of 2%. This trend has led to speculation that Federal Reserve Chairman Jerome Powell may be ready to shift away from his Quantitative Tightening policies in order to avoid the risk of a recession.
However, Arthur Hayes, the founder and former chief executive of the BitMex crypto exchange has cautioned that Bitcoin and the market for crypto assets may experience a decline if the U.S. Federal Reserve does not adjust its monetary policies. In a new treatise on U.S. macroeconomic policy, Hayes claims that a “disastrous global financial crisis” could be poised to submerge BTC and the crypto market, and that the current Bitcoin surge should not be seen as the start of a new bull run.
The recent rally in the alpha coin was triggered by a decline in the U.S. Consumer Price Index, indicating a likely deceleration in interest rate hikes. Nevertheless, the rise in Bitcoin’s value has raised some eyebrows, as it is still unclear how a possible Federal Reserve policy shift could impact the crypto market.
Despite the uncertainty, it is clear that the cryptocurrency market is beginning to gain traction once again. With the possibility of a new bull run looming, investors will be watching closely to see if the Federal Reserve can effectively manage its monetary policy to ensure the market’s continued success.