BitMEX co-founder Arthur Hayes forecasts the Federal Reserve's potential return to quantitative easing, potentially benefiting Bitcoin.
Impact of QE on Bitcoin and U.S. Fiscal Policy
Arthur Hayes' article highlights that Federal Reserve Chairman Jerome Powell might be forced into QE to manage the U.S. fiscal deficit, presenting a positive outlook for Bitcoin's growth. The anticipated monetary policy shift could relieve fiscal pressure, proving beneficial for digital assets like Bitcoin.
Bitcoin's Rising Role Amid Potential Federal Reserve Actions
Instances of QE following past financial downturns saw Bitcoin prices appreciate, reinforcing its 'digital gold' reputation. As of April 2, 2025, Bitcoin is trading at $84,249.03 with a market cap of $1.67 trillion, underscoring its market dominance.
Potential Changes in Crypto Financing
Coincu analysts suggest that potential QE could reshape the crypto financing landscape, echoing liquidity surges seen after 2008. Bitcoin's unique properties may attract increased attention as investors seek secure alternatives amid prolonged inflationary pressures.
The anticipated return to QE by the Federal Reserve could significantly impact the cryptocurrency market, solidifying Bitcoin's role as a reliable asset during economic instability.
