Arthur Hayes says bitcoin will collapse due to actions of the US government

Arthur Hayes, the founder and former CEO of BitMEX, has shared his opinion on the future of the flagship cryptocurrency. As the expert wrote in his new article «Bouncy Castle,» bitcoin may collapse in the near future if the Fed does not change its monetary policy.

Hayes noted that BTC $60,918.29 Bitcoin -1.27% Market capitalization $1.2 trillion VOL. 24 hours $1.35 billion and other digital assets will begin to lose value if it becomes known that the Federal Reserve will resume issuing paper money. «If the Fed does not execute a reversal or several Fed officials deny any expectations of a reversal even after the 'good' consumer price index (CPI) is printed, bitcoin will likely fall to previous l ows,» the former BitMEX chairman emphasized.

It is worth noting that on February 1, it will become known whether the US Central Bank will raise interest rates. A few days ago, US Federal Reserve President Jim Bullard proposed to increase the rate by 50 basis points at the next meeting.

Regarding the impact of large cryptocurrency platforms on the value of bitcoin, Arthur Hayes emphasized that the period of liquidations of major players in the crypto market is over. «If you had to sell a large volume of cryptocurrency, you would have already done so. There' s no reason to hold back if you need fiat to stay afloat,» Hayes tweeted.