BitMEX Co-Founder Arthur Hayes Predicts Bitcoin BTC/USD Will Surge

Arthur Hayes, co-founder of BitMEX, has projected a significant increase in the value of Bitcoin BTC/USD.

Arthur Hayes, the co-founder of BitMEX, recently made a bold prediction regarding a substantial increase in the value of Bitcoin (BTC/USD), linking the anticipated surge to the tariff policies of President Donald Trump.

What Happened: Taking to X, formerly Twitter, Hayes stated that the sell-off of U.S. treasuries and the subsequent rise in 10-year bond yields could be the catalyst for more money printing. This factor has historically been known to ignite significant Bitcoin rallies.

Additionally, Hayes noted that the devaluation of China's yuan, a consequence of central bank money printing, might induce investors to opt for transferring their wealth into Bitcoin as a measure of preservation.

"It's on like donkey kong. We will be getting more policy response this weekend if this keeps up. We are about to enter UP ONLY mode for $BTC," he wrote.

It’s on like donkey king. Donkey part is over. We will be getting more policy response this weekend if this keeps up. We are about to enter UP ONLY mode for $BTC.

— Arthur Hayes (@Arthur_0x00) August 25, 2023

He further disclosed that banks might be granted a Supplementary Leverage Ratio (SLR) exemption, a proposal supported by JPMorgan (NYSE:JPM) Chase & Co (NYSE:JPM) CEO Jamie Dimon.

This exemption would allow banks to hold more treasuries without needing to increase required capital reserves, providing banks with additional liquidity for lending activities.

At the time of writing, Bitcoin was valued at $83,343, displaying a 4.9% surge in the past 24 hours.

Why It's Important: Hayes' prediction is noteworthy as it showcases the potential influence of global economic policies on cryptocurrencies. The unfolding sell-off of U.S. treasuries, the ensuing rise in 10-year bond yields, and the weakness in China's yuan—all a result of central bank money printing—could create a pertinent stage for Bitcoin.

In particular, the possibility of an SLR exemption for banks from the Federal Reserve would provide banks with more liquidity to lend from, potentially boosting the cryptocurrency market. This scenario is especially pertinent considering the recent sell-off in treasuries and the capital gains realized by Bitcoin in response to previous instances of quantitative easing (QE).