Connect with us
DAPA Banner

Crypto World

Arthur Hayes Predicts Fed Money Printing From US-Iran Tensions Could Propel Bitcoin (BTC) Higher

Published

on

Nexo Partners with Bakkt for US Crypto Exchange and Yield Programs

Key Takeaways

  • Arthur Hayes, BitMEX co-founder, believes extended US-Iran military engagement may compel the Federal Reserve to reduce interest rates and expand monetary supply.
  • Historical precedent shows the Fed has injected liquidity during previous US military operations, according to Hayes.
  • Escalating oil prices resulting from regional tensions could drive 10-year Treasury yields upward, potentially prompting Fed intervention.
  • Bitcoin dropped from approximately $66,000 to $63,000 when tensions intensified but has since rebounded to the $73,000 level.
  • Market observers identify $70,685 as crucial Bitcoin support, with near-term price objectives ranging from $75,000 to $80,000.

Arthur Hayes, who co-founded BitMEX and currently serves as chief investment officer at Maelstrom, believes the escalating US-Iran tensions may initiate a sequence of events culminating in Federal Reserve monetary expansion — potentially benefiting Bitcoin prices.

In analysis published Monday on his blog, Hayes explained how prolonged US military operations in Middle Eastern regions have historically compelled the Federal Reserve to implement rate reductions and inject market liquidity. He cited the 1990 Gulf War, post-9/11 global counterterrorism efforts, and the 2009 Afghanistan troop surge as illustrative examples.

“The cure, as always, is cheaper and more plentiful money,” Hayes noted in his analysis.

In a March 6 post on X, Hayes cautioned that sustained increases in Brent crude prices stemming from US-Iran hostilities could cause 10-year Treasury yields to surge dramatically. Such market turbulence would elevate the MOVE Index — which tracks US bond market volatility — creating what Hayes considers a “prerequisite” for Federal Reserve monetary intervention.

Brent crude has climbed approximately 20% since conflict intensification began, fueled by concerns about Middle Eastern supply constraints. Nevertheless, oil prices declined over 1% Thursday to approximately $80 per barrel following Trump administration announcements of price stabilization measures, including a 30-day exemption permitting India to maintain Russian oil purchases.

Advertisement

Implications for Bitcoin Markets

Hayes contends that Federal Reserve rate reductions or balance sheet growth would increase market liquidity, historically providing positive momentum for Bitcoin and comparable risk assets.

Bitcoin’s response to the military tensions has shown volatility. Prices declined from roughly $66,000 to $63,000 immediately following hostilities escalation. Subsequently, the cryptocurrency has recovered and recently reached a one-month peak of $73,000.

Hayes recommends awaiting definitive indications of Fed policy adjustments — either interest rate cuts or balance sheet expansion — before initiating Bitcoin or altcoin purchases. He has not advocated for immediate market entry.

Probability of a rate reduction at the Federal Reserve’s March 17–18 policy meeting remains minimal. CME Group’s FedWatch tool indicates merely 2.7% odds of a cut at that gathering. Most market observers anticipate the Fed will maintain rates within the 3.50% to 3.75% range.

Advertisement

Expert Technical Analysis

Cryptocurrency analyst Ali Martinez has pinpointed $70,685 as a critical Bitcoin support threshold. Maintaining that price level could facilitate a near-term advance toward $75,000–$80,000, according to market technicians.

Inflation pressures represent an additional consideration. Should inflation remain persistent, the Federal Reserve may possess limited flexibility for rate cuts, potentially constraining any immediate rally in risk assets like Bitcoin.

Hayes has offered comparable forecasts repeatedly in recent months. In January, he suggested potential US military operations in Venezuela as a probable catalyst for Fed monetary easing. Last month, he indicated an AI-driven financial crisis as the subsequent trigger.

In December, Hayes forecasted Bitcoin would reach $200,000 this month, referencing reserve management acquisitions announced by the Fed during that period.

Advertisement

Currently, Bitcoin maintains trading activity within the $70,000–$73,000 corridor, with markets monitoring both Federal Reserve communications and Middle Eastern geopolitical developments.

Remember: Preserve all tokens like [[EMBED_0]], [[IMG_0]], [[LINK_START_0]], [[LINK_END_0]], [[SCRIPT_0]], [[FIGURE_0]] etc. exactly as they appear. These are placeholders for embeds, images, and links that must not be changed.

Advertisement

Source link

Continue Reading
Click to comment

You must be logged in to post a comment Login

Leave a Reply

Crypto World

Morgan Stanley Sets Bitcoin ETF Fee at Ultra-Low 0.14%

Published

on

Morgan Stanley Sets Bitcoin ETF Fee at Ultra-Low 0.14%

Investment bank Morgan Stanley is seeking to launch its spot Bitcoin exchange-traded fund at a 0.14% fee, which would make it the cheapest in the US market and potentially force rivals to cut fees to stay competitive.

The 0.14% fee, proposed in Morgan Stanley’s latest S-1 registration statement on Friday, would be one basis point below the Grayscale Bitcoin Mini Trust ETF (BTC), currently the cheapest in the US market, and 11 basis points below the BlackRock-issued iShares Bitcoin Trust ETF (IBIT).

“Big move here. They are not messing around,” Bloomberg ETF analyst James Seyffart said, predicting that the Morgan Stanley Bitcoin Trust (MSBT) is “likely to launch in early April.”

Source: James Seyffart

Fellow Bloomberg ETF analyst Eric Balchunas said the low fee means that none of Morgan Stanley’s roughly 16,000 financial advisors — which manage $6.2 trillion in client assets — would feel conflicted in recommending the product to its clients.

Given that spot Bitcoin ETFs track the price movements of Bitcoin (BTC), Morgan Stanley’s ultra-low fee could spark a fresh fee war in the $83 billion market, putting immediate pressure on rivals to cut costs or risk losing assets.

Advertisement

Regulatory approval would make Morgan Stanley the first bank to issue a spot Bitcoin ETF, expanding access to Bitcoin exposure for millions of its high-net-worth clients.

“They are the ultimate gatekeepers of rich boomer money,” Balchunas added.

Morgan Stanley previously selected Coinbase and Bank of New York Mellon as the proposed custodians for its Bitcoin ETF.

Morgan Stanley seeking suite of crypto ETFs, banking charter

Morgan Stanley, previously one of the more crypto-hesitant Wall Street firms, filed for the spot Bitcoin ETF in the first week of January, along with a Solana (SOL) ETF.

Advertisement

Related: Bitcoin traders see 53% odds of sub-$66K BTC by April 24 

It then filed papers for a staked Ether (ETH) ETF later that week, and by the end of the month, the bank appointed one of Morgan Stanley’s longest-standing executives, Amy Oldenburg, to lead its digital asset team.

Source: James Seyffart

Morgan Stanley also applied for a national trust banking charter on Feb. 18, seeking to custody certain digital assets and execute purchases, sales and swaps for clients in addition to staking services.

In October, before the investment bank adopted its institutional crypto strategy, it recommended a 2% to 4% allocation to crypto portfolios for investors. It also allowed its financial advisors to recommend crypto funds to clients with individual retirement accounts (IRAs) and 401(k)s.

Magazine: Bitcoin may face hard fork over any attempt to freeze Satoshi’s coins

Advertisement