Arthur Hayes Says Iran Conflict Could Trigger Fed Easing, Boost Bitcoin
Arthur Hayes argues that a prolonged US-Iran conflict will likely lead to Federal Reserve easing and increased Bitcoin prices, following a historical pattern.Summary
BitMEX co-founder Arthur Hayes suggests that continued US military involvement in Iran could prompt the Federal Reserve to cut interest rates and increase the money supply, which would likely benefit Bitcoin. He bases this prediction on a four-decade trend where US military campaigns in the Middle East have historically been followed by Fed easing. Hayes points to the Gulf War, the aftermath of 9/11, and the wars in Iraq and Afghanistan as precedents. He believes that a regime change in Iran is a long-standing bipartisan goal, providing the Fed with justification for easing monetary policy. Despite his bullish long-term outlook, Hayes advises investors to wait for concrete action from the Fed – rate cuts or money printing – before increasing their exposure to Bitcoin and altcoins. At the time of publication, Bitcoin was trading around $66,200, significantly below its all-time high.
(Source：BeInCrypto)