The annual Korea Blockchain Week event began this week. It brings together the world’s most influential crypto industry experts and entrepreneurs to discuss the latest innovations and technologies. The well-known Arthur Hayes, former CEO of BitMEX, was also present. Hayes claims in his speech that not only is Bitcoin (BTC) already in a bull market, but that it started back in March.
Try not to get too maimed in Seoul tonight. I’m there bright and early at 9:45am. LFG! #KoreaBlockchainWeek pic.twitter.com/tuKFrlRpQ8
— Arthur Hayes (@CryptoHayes) September 4, 2023
The Federal Reserve plays a crucial role in Bitcoin prices
According to Hayes, the bull market began with the collapse of several major US banks. In addition to the bankruptcy of Silicon Valley Bank, Silvergate Bank and Signature Bank also had to close. This American banking crisis caused investors to switch to Bitcoin, resulting in a sharp rise in price.
According to Hayes, the Federal Reserve plays a crucial role in this story. The Fed’s ongoing interest rate hikes are having a historic impact on global financial markets. As the Federal Reserve tries to curb inflation, more and more large investors are looking for an alternative safe haven to protect their assets.
To prevent further bankruptcies of this type, the Federal Reserve created them Bank Term Funding Program (BTFP). This Fed emergency lending program provides one-year loans to financial institutions. Hayes says:
“I and the rest of the market rightly saw through this because they essentially admitted that they created this problem – the structure of the banking system – and this is one of the ways to solve it, which is to print more money.”
Bitcoin continues to evolve in the financial landscape
According to Hayes, Bitcoin is starting to go its own way. Traditionally, investors stay away from risky assets like Bitcoin during times of high interest rates. However, according to Hayes, this connection appears to be fading.
Bitcoin appears to be becoming a “store of value.” Hedge against inflation. This appears to make the digital currency less vulnerable to changes in interest rates. Nevertheless, Bitcoin price is currently struggling due to the gloomy macroeconomic climate.