Nobody Understands the Importance of What’s Coming for BTC – Arthur Hayes #Finance

as the price goes up people want to get involved that’s all that really matters I know people care about technology and blah blah blah but it’s it’s all in the price right I don’t think people really understand where the flows are coming in from so if we take the

Bitcoin ETF um and I don’t know know when this was the last it’s called a 13f filing by the SEC you see these large funds uh and investors and they have to list uh their biggest positions uh and so you saw who owned how many Shares of the of the Bitcoin

href="https://cashnews.co/etfs" style="font-weight: bold; color: #1a73e8; text-decoration: none;">ETFs and what you saw near at the top of the list were funds like Millennium and Citadel and 72 and these guys are Hedge Funds right they don’t believe in Bitcoin they

don’t believe in anything they believe in making money Arthur Hayes former bit Mech CEO believes the state of the economy will have a huge impact on Crypto currencies he points out that

money supply not price drives growth and expects additional money printing to boost Bitcoin Arthur Hayes also emphasizes ethereum’s potential when Interest Rates move with traditional Banks embracing #1a73e8; text-decoration: none;">Cryptocurrencies for Profit resulting in market growth Hayes argues that the quantity of money not the price promotes growth cutting Interest Rates focuses on pricing but Credit dollars issued by central banks

and governments have not increased considerably the recent rate drop had a limited impact on Cryptocurrency due to the poor money supply he anticipates that policy makers use quantitative

easing greater Bank lending or government borrowing to support the economy China’s Central Bank has lowered policy rates potentially injecting Fiat cash into Global Markets we will now

watch clips from the interview to gain further insights into Arthur Hayes’s discussion please like subscribe to our Channel and turn on post notifications for more exclusive content enjoy the CashNews.co I’m of the school that believe that the quantity of money is more important than

the price of money obviously when you cut Interest Rates you’re focusing on on the price of money and the quantity of money by that I mean sort of like the number of Credit dollars that are being emitted by Banks central banks um governments what have you

that hasn’t really increased that much the fed’s targeting its policy rate and yes the Crypto Market has been a bit buoyant after the September 18th cut and to your point probably

hasn’t been as um I guess exciting as people would have thought but I describe that to the fact that the quantity of money at least the expectations of what that’s going to be haven’t really changed and so we’re going to need to see whether it’s the um cessation of the

fed’s quantitative tiing program restarting of money printing via quantitative easing um more bank Loans being given or uh increased government borrowing or the US Treasury running down its checking account with the FED there’s various ways in which

dollars can be emitted into the financial system I do believe those are coming in time because I believe the effects of these rate Cuts is not going to be as much as the authorities would have hoped and if Camala Harris continues to Trail in some of the polls they’ll have to do more to get

the financial Markets higher on Election Day which means more dollars coming out of the Treasury the fed the banking system but one area where I believe Fiat

Liquidity is waiting to explode into the global Markets is obviously in China and we’ve seen since the FED has started cutting rates the pboc People’s Bank of

China has cut a raft of different policy rates so I believe the amount of Fiat Liquidity created to attempt to reduce the volatility of this you know cataclysmic you know seismic change in the way that economies are structured is going to dwarf any money printing event that

we’ve ever had which is why I believe Bitcoin can hadit a million dollars you know with three I don’t know 10 20,000 whatever the number is but it’s going to be crazy because we saw what happened during you know the first pandemic of this Century how much money was created to try

to lock everybody in their homes well what’s going to happen when the United States is being dethrown by a bunch of other countries and they have to share power do you think they’re going to go quietly into the night and just accept it or print as much money as they can to do what they

can to Forstall that situation and the balancing factor is Bitcoin we love volatility we love the natural state of the universe the authorities hate it and so as they print more money Bitcoin coin and other text-decoration: none;">Cryptos go up in value so that’s where I believe the real bull market starts we saw sort of a preview of that sort of the banking crisis in the US in March of 2023 bitcoin’s up 3x since then right uh they haven’t stopped Republicans Democrats in us are

printing money European Central Bank is printing money China eventually is gonna have to print money to stop the deflation in China Japan has never stopped printing money so you know it’s it’s only going to get worse in terms of the amount of Fiat going around the world the Banks

don’t hate Crypto they just hate that people like me and CZ make money on it they don’t we’re not the typical sort of people who are involved in traditional

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance they want a cut of the fee pie so now that Larry thinkink has a cut of the fee pie you know the Bitcoin ETF was his most successful ETF launch ever and they’re the largest asset

manager in the world right of course he’s gonna be on every single mainstream Financial media couting Bitcoin because he’s making money off of it so as all these banks have Crypto

trading desks they have products to their High Net Worth and individuals they have Savings products and all these sorts of things they’re going to love none;">Crypto because as long as you keep your money with them whether it’s in a dollar or it’s in a Bitcoin derivative it doesn’t matter because they’re making fees so yes I I think black rock is just talking its book they want you to spend money with them so

they’re going to tell you how great Bitcoin is I know people care about technology and blah blah blah but it’s it’s all in the price right if more and more people are willing to transact in this thing and believe it’s worth you know what 64,000 or whatever it is at the time

we’re filming this and and it’s what $1.5 trillion do asset class in terms of you know just looking at Bitcoin for example it makes sense why traditional banks are now interested they can make money off of it it’s big enough where they can you know put their highly paid employees

trading it selling it structuring products for it so it’s all about the price it has nothing to do with their Bel belief in self um censorship no self censorship resistant according to Arthur Hayes ethereum is appealing because of its vibrant developer community and cuttingedge applications

however Interest Rates have affected its performance ethereum’s Yield will become more competitive when Interest Rates shift making it a more appealing internet bond in his analysis of Bitcoin

style="font-weight: bold; color: #1a73e8; text-decoration: none;">ETFs Hayes also described how Hedge Funds took advantage of a Profitable investment These funds are selling off their ETF Holdings as this opportunity Fades putting pressure on the market to sell

according to Arthur Hayes it is unwind of Profitable trades not a demand issue Hedge Funds interest in ethereum-based exchange traded funds ETFs is now

restricted due to its lower basis Yield hay expects reduced stakes in Bitcoin ETFs and cautious engagement with ethereum bold; color: #1a73e8; text-decoration: none;">ETFs until market conditions improve with Interest Rates continuing to fluctuate ethereum’s value proposition will become more apparent let’s go back to the interview and watch more Clips to gain insights from Arthur

Hayes so number one it’s the most robust ecosystem for sort of a decentralized computer it has the most developers uh it has the largest trading applications it’s the first place where the you know vertical defining applications are launched we do a lot of investing if I think about the

things that are new and Innovative they start on the ethereum network and they’re copied on other other networks now that doesn’t mean that it’s the best performing coin this year I think that post the merge whenever that was last year the year before we went with this narrative

that ethereum is an internet Bond because it has an endogenous Yield related to the staking Yield which has been about you know three to four perc in E so that’s a great narrative if but Treasury bills us Treasury bills in

terms of a Fiat asset the safest asset you can own because the US government will never go bankrupt in its own currency they was Yield five and a half percent and they have for the last I don’t know year or so um so I have if I’m a Yield conscious

investor which a lot of people are I can make 4% in eth I can make five and a half percent in dollars right and obviously eth has a volatility and the price risk attached to it I’m perfectly happy to make that 4% of the price is like zooming higher but if it’s like Flatline or slightly

down why would I take that risk and I can earn more money on a risk adjusted basis just by being a t- bills so I think ethereum has been harmed from our interest rate uh situation that’s changing right so the FED cut 50 basis points reverse repo now is uh 4.8% I checked yesterday it’s

expected that the FED will cut another 25 basis points in November it could be more who knows uh and so the the curve the forward curve for fed F fed funds is going to be dip below the East scking Yield you know in some point in the next 12 months and so on a forward looking basis

ethereum looks like a lot more as this internet Bond and so I think you’re going to start to see eth awaken again as people like oh okay 4% is not so bad in a world where I think the fed’s going to go to zero within the next you know 18 to 24 months I don’t think people really

understand where the flows are coming from so if we take the Bitcoin ETF um and I don’t know know when this was the last it’s called a 13f filing by the SEC you see these large funds and investors and they have to list uh their biggest positions uh and so you saw who owned how many

Shares of the of the Bitcoin ETFs and what you saw near the top of the list were funds like Millennium and Citadel and 72 and these guys are Hedge Funds right

they don’t believe in Bitcoin they don’t believe in anything they believe in making money and so Bitcoin I bought the Bitcoin ETF and I sold a c Futures Contract that was a you know 20 30% per Anum Yield that’s called the basis trade yes and so on

a risk adjusted basis that’s a very attractive trade because these guys go out to their investors saying I’ll make you eight to 10% a year with very low volatility so if I’m already capturing you know five six perent in you know a few month period just by putting on a delta

neutral meaning a risk neutral trade in Bitcoin I’m gonna pile into that and that’s what you saw you saw these funds put on massive positions however that basis has come down and you know reached some somewhere in the low single digits this summer I think it’s around six or s%

right now so they’re in they’re in Profit they’ve made a great risk adjusted return and we’ve seen them in the spot Market unloading the Shares of the of the ETF I’m talking about Bitcoin here and so I think when we see the next filing

we’re going to see a lot of these funds that were number one a quarter ago have reduced their positions materially because they were unwinding this basis state so it has nothing to do with about demand for Bitcoin but obviously every day people on Twitter are posting oh look at the net

inflows in into the ETF and then understanding why that’s happening so when we moved to ethereum which was launched during the summer and the basis Yield in ethereum was very negligible meaning buying ethereum and then shorting a Futures Contract especially

when you eliminate the staking Income then there’s not really a reason to put on this trade and the CME ethereum Futures Contract Liquidity isn’t isn’t very good so if I’m a millennium if I’m a 0 72 or one of these per

Portfolio managers in one of these pods this is a bad risk industried trade therefore I’m not going to be as incentive IED to buy the ETF Arthur Hayes reveals that lowered rates could lead to extraordinary money production which will help Bitcoin Hayes stated that traditional

institutions are adopting Cryptocurrency for Profit black Rock’s successful introduction of the Bitcoin ETF shows this meanwhile Bitcoin reached a big milestone when it

surpassed the 21- we exponential moving average EMA of $60,500 this scenario has prompted Market observers to speculate that Bitcoin is entering a parabolic phase defined by a fast price increase analyst Elia believes that this phase will push Bitcoin above $115,000 in contrast wrecked

Capital believes that Bitcoin is on the verge of moving from the reaccumulation phase to the parabolic upside phase sharks and whales also increased their Bitcoin Holdings supporting the rising Trend according to santiment data four .08 billion worth of bitcoin has been purchased

in the last 6 months demonstrating strong investor interest furthermore spot Bitcoin ETFs have had a significant comeback with $500 million in Liquidity encouraging Market

confidence Market Watchers are keenly monitoring bitcoin’s price trend anticipating the next leg up the combination of technical indicators and investment activity paints a positive image for the new text-decoration: none;">Cryptocurrency while Market volatility remains a concern the current Trend provides a solid platform for future price increases analysts will continue to watch important indicators like moving averages and investors to understand bitcoin’s development better what

implications do you think Arthur Hayes’s predictions on increased money Printing and shifting Interest Rates will have on the Cryptocurrency market particularly for

Bitcoin and ethereum please drop your thoughts in the comments below share this CashNews.co and hit your thumbs on the like button thanks for watching and don’t forget to subscribe