Arthur Hayes: 'Major Economies To Print Even More Money' In The Next 24 Months

Arthur Hayes, co-founder of BitMEX, on Monday laid out a bullish outlook for the cryptocurrency market, fueled by factors including the upcoming US presidential election and continued expansion of the monetary base.

What Happened: Hayes believes the election will lead to looser monetary policies as the Biden administration seeks re-election, a scenario historically correlated with crypto rallies.

Discussing the potential catalysts for Bitcoin‘s BTC/USD price movement, Hayes stated, “You can look at the previous halvings and anywhere between 4 to 18 months later you get a new all-time high. More important thing is that the major economies around the world are going to print even more money between now and, say, the next 18 to 24 months.”

He pinpointed the U.S. presidential election as a pivotal event, explaining, “It’s the global empire, its financial policy influences with the Chinese, the Japanese, the Europeans all do.”

Hayes elaborated on the strategies likely to be employed by current U.S. leaders to secure an election win, suggesting significant monetary easing could be on the horizon.

“Janet Yellen, the U.S. Treasury secretary, and Jerome Powell, Chair of the Federal Reserve, are doing everything they can to make sure that Joe Biden gets reelected. And that basically means how do I reduce the cost of government borrowing so that him and his Democratic Party can hand out more goodies to the electorate and get reelected?”

Also Read: ‘Republicans Smell Blood In The Water:’ Uniswap CEO Warns Democrats Of ‘Swing States Level Miscalculation’ On Crypto

With the election approaching, Hayes predicts both parties will promise financial incentives to voters, funded by increased national borrowing and monetary expansion.

“Regardless of who wins, whoever wins there are campaigning on. I’m going to give you something that you don’t have to pay for, and I’m going to pay for it by borrowing my money. I’m going to pay for it by using the central bank to print money.”

Hayes also touched on the M2 money supply indicator, noting its significant correlation with Bitcoin’s price movements.

“The problem with M2 is that it doesn’t capture all the things that are used as credit money in the economy. And every time there’s a new problem, the elites in charge come up with a new way to confuse people about how they’re going to print money.”

What’s Next: The implications of the U.S. presidential election on the global financial landscape, including cryptocurrencies, will be a significant theme at Benzinga's upcoming Future of Digital Assets event on Nov. 19.

The event is set to explore how geopolitical and economic policies might shape the future of digital currencies and assets.

Read Next: Bitcoin Up 3%: What Will Inflation Data And Powell Speech Bring This Week?

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