Arthur Hayes: If the US economy enters a recession, the Federal Reserve will increase its money printing efforts, which may stimulate a surge in Bitcoin

In his latest article "Sugar High", Arthur Hayes, co-founder of BitMEX, said that the liquidity conditions of fiat currencies could not be more favorable as we enter the final stages of the third quarter. As cryptocurrency holders, we have the following advantages: 1. Global central banks, led by the Federal Reserve, are reducing the price of currency. The Federal Reserve cut interest rates with inflation above target and the US economy continues to grow. The Bank of England and the European Central Bank may continue to cut interest rates at their upcoming meetings. 2. Treasury Secretary Yellen promised to issue $271 billion in US Treasury bonds and conduct $30 billion in repurchases by the end of the year. This will add $301 billion in US dollar liquidity to financial markets. 3. The US Treasury has about $740 billion left in the Treasury Account (TGA), which can and will be used to stimulate the market and help Harris win the election. 4. After raising interest rates by 0.15% at its meeting on July 31, 2024, the Bank of Japan was so alarmed by the speed of the yen's strength that it publicly stated that future rate hikes would take market conditions into account. This is a euphemism for "if we think the market will fall, we won't raise rates." Hayes concluded: "Some people point out that historically, the stock market has fallen when the Fed cuts rates. There are also concerns that the Fed's rate cuts are a leading indicator of a recession in the United States and even in developed markets. This may be correct, but if the Fed cuts rates when inflation is above target and economic growth is strong, imagine what they will do if there is a real US recession. They will increase their printing of money and significantly increase the money supply. This will cause inflation and may be bad for certain types of businesses. But for assets with limited supply like Bitcoin, it will be a '2 Da Moon' journey."