• A popular analyst says that Bitcoin (BTC) and the crypto markets could receive a boost from the resumption of monetary expansion.
• BitMEX founder Arthur Hayes predicts wealthy asset holders who receive interest payments from the Fed will likely buy risk assets with the proceeds.
• InvestAnswers suggests global liquidity, or the amount of money circulating in the system, has historically been one of the best indicators for crypto market movements.
Money Printing to Resume: Impact on Bitcoin and Cryptocurrency Markets
A popular analyst believes that Bitcoin (BTC) and other cryptocurrencies could benefit from an increase in global liquidity as a result of money printing by central banks around the world. The US Federal Reserve is expected to resume its money printing program soon, which would lead to more money entering circulation and potentially boosting cryptocurrency prices.
Global Liquidity Indicator for Crypto Market Movements
InvestAnswers suggests that global liquidity, or the amount of money circulating in the system, has historically been one of the best indicators for crypto market movements. With liquidity slightly falling over the past year, it is likely that this trend will reverse when more money enters circulation again due to resumed money printing programs.
Arthur Hayes’ Prediction
BitMEX founder and crypto veteran Arthur Hayes recently said that when it comes to debt ceilings being raised and other economies like Germany recognizing they are in a recession, money printing will begin again which should drive up prices across all markets including cryptocurrency markets. He also predicted that wealthy asset holders who received interest payments from central banks would use those funds to purchase risk assets such as gold, Bitcoin, AI tech stocks etc., thereby further increasing demand for these assets.
The resumption of global liquidity through increased money printing could be beneficial for Bitcoin (BTC) and other cryptocurrencies as well as traditional asset classes such as gold and AI stocks. Therefore investors should keep an eye out for news about central banks’ decisions related to monetary expansion programs so they can be prepared to take advantage of any potential price increases before they happen.