- Arthur Hayes critiques Yellen and Powell’s inconsistent financial decisions.
- Hayes links Bitcoin’s decline to potential non-extension of BTFP.
- Hayes sees Bitcoin’s support level between $30,000 to $35,000.
Arthur Hayes, a co-founder of BitMEX, has provided his perspective on how the fluctuating choices made by Treasury Secretary Janet Yellen and Federal Reserve Chairman Jerome Powell could affect the cryptocurrency industry. In his piece titled “Yellen or Talkin’?”, Hayes also noted that the current decline in Bitcoin’s
At first, Hayes’ article considered the inconsistency between the statements and behaviors of Yellen and Powell. He claimed that while Yellen announced a transition of most borrowing to Treasury bills, she only redirected her department’s borrowing towards T-bills. This action led to the injection of hundreds of billions of dollars into the worldwide financial markets.
Likewise, during the December 2023 FOMC (Federal Open Market Committee) press conference, Powell suggested the possibility of a reduction in interest rates in 2024. Although the market expected this decrease, it has not been officially confirmed.
In his essay, Hayes also addressed the ongoing downturn in the Bitcoin market as a significant issue. The creator of BitMEX expressed his strong conviction that the Bank Term Funding Program (BTFP) has played a substantial part in the current decline of Bitcoin’s value. He suggests that the probability of the BTFP not being extended is contributing to the reduced likelihood of Bitcoin entering a period of rising prices.
Furthermore, emphasizing the 30% decrease from the high of $48,000 following the ETF approval to $33,600, Hayes identified Bitcoin’s support level in the range of $30,000 to $35,000. On January 22, he posted an update, considering Bitcoin’s ongoing downward trend.
Colin Wu, a reporter from China, conveyed Hayes’ trading tactics, echoing the words from Hayes’s essay. According to what Hayes claimed, the chances are slim that Yellen and Powell will approve the extension of the BTFP, which could result in Bitcoin’s value falling under $35,000.
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