- Hayes Tips a BTC Breakout as Central Banks Start Cutting Rates.
- However, the Fed meeting on June 12 could help determine BTC’s next price direction.
Bitcoin [BTC] Rates could be poised for a bullish breakout from their months-long range as major central banks move to cut rates, according to BitMEX founder and Maelstrom CIO Arthur Hayes.
Hayes had previously predicted the outbreak could happen in August. But he did adjusted its prospects after interest rate cuts by the European Central Bank (ECB) and the Bank of Canada (BOC).
“The central banks’ fireworks display in June, kicked off this week by the BOC and ECB rate cuts, will catapult cryptocurrencies out of the Northern Hemisphere summer doldrums.”
This will mark the start of central bank easing cycles, and the US will be forced to step in, Hayes said. As a result, the executive power,
“Go long on Bitcoin and then on sh*tcoins. The macro landscape has changed from my baseline. That is why my strategy will also change.”
Macro outlook and key catalysts
BTC has held above $70,000 for the past two days and was poised to flirt with $72,000 or the March ATH if key macro events turn in its favor in the coming days.
Most market watchers believed that Bitcoin could set a definitive price direction after the Fed meeting next Wednesday (June 12).
Recently, Quinn Thompson, founder of crypto hedge fund Lekker Capital, summarized the macro outlook declared,
‘The market needs to be convinced that Powell will make cuts in July. That could be the result of a weak jobs report Friday, a weak CPI and/or a dovish Fed next Wednesday.”
But even if the Fed doesn’t cut spending immediately, U.S. moderation of the massive drop in the value of the Japanese Yen could increase the money supply and lead to the same outcome, Hayes said.
Hayes responded to a reported Japanese issuance of US government bonds to boost the yen noted That,
“Oh, Bad Gurl Yellen has some work to do. $JPY must become stronger to prevent the UST apocalypse.”
The increase in the US money supply has now begun in earnest, and most analysts expect it to boost BTC and overall risk assets.
In the meantime, BTC Open Interest (OI) rates have soared to a record high, demonstrating a massive influx of liquidity into the king coin. Crypto derivatives tracking platform Coinglass noted,
‘#Bitcoin open interest reaches record high of $37.66 billion’
Source: Coinglass
The OI spike underlines the bullish expectations for the king coin. That said, more momentum and direction could be set next week after the Fed’s decision.