CRYPTOCURRENCY
cryptocurrency
Bitcoin will Reach $70,000 Soon if the Federal Reserve Cuts Rates
BitMEX's ex-CEO Arthur Hayes suggested that a Federal Reserve rate cut could propel Bitcoin to the $70,000 mark, rejuvenating the US banking sector. Historical trends show a symbiotic relationship between the Federal Reserve's monetary decisions and Bitcoin's trajectory. Bitcoin's ascent outpaced the Fed's balance sheet expansion by 129% during the pandemic. However, post-March 2022, the Federal Reserve implemented three additional hikes, causing a reevaluation among market participants and analysts. The 'Real Yield', derived by offsetting the Government Bond Yield with Nominal GDP Growth, remains pivotal in this discourse. The US Treasury's augmented bond issuance at steeper rates may inadvertently amplify nominal GDP growth.