Arthur Hayes, co-founder of BitMEX, shared insights on current trends in the US banking system and their impact on the cryptocurrency market. He also discussed global events affecting liquidity and demand for Bitcoin.
Impact of New Banking Regulations
Hayes notes that recent developments in US banking rules, particularly the renewed SLR exemption, could free up liquidity by allowing banks to hold more Treasuries without capital penalties.
Global Economic Factors
He also points to unrest in the Middle East, which, despite temporary de-escalation, continues to support demand for safe-haven assets like Bitcoin. Expectations of rate cuts from the Federal Reserve are weakening the dollar and creating pressure on global investments.
Outlook for Bitcoin and Crypto Infrastructure
Overall, Hayes sees Bitcoin as the main beneficiary of a brewing global shift in liquidity, regulation, and monetary policy, which may soon drive it past previous highs.
Thus, according to Hayes, changes in the US banking system and global economic factors create favorable conditions for the growth of Bitcoin and crypto infrastructure as a whole.
