Arthur Hayes: If the US economy enters a recession, the Federal Reserve will increase its money printing efforts to stimulate Bitcoin "2 Da Moon"

BlockBeats news, on August 28, BitMEX co-founder Arthur Hayes published the latest article "Sugar High", discussing why the yen's interest rate hike is not enough. Hayes said that entering the final stage of the third quarter, fiat currency liquidity conditions could not be more favorable for cryptocurrency holders:

Central banks around the world, now led by the Federal Reserve, are reducing the cost of funds. The Federal Reserve cut interest rates when inflation is 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.

Treasury Secretary Yellen promised to issue $271 billion in Treasury bills and conduct $30 billion in repurchases by the end of the year. This will add $301 billion in US dollar liquidity to the financial market.

The U.S. 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.

“Some have pointed out that historically when the Fed cuts rates, the stock market falls. There are also concerns that Fed rate cuts are a leading indicator of a recession in the U.S. and even in developed markets. This may be true, but if the Fed cuts rates when inflation is above target and economic growth is strong, imagine what they will do if a U.S. recession actually occurs.

They will increase their money printing and significantly increase the money supply. This will cause inflation and may be bad for certain types of businesses. But for an asset with a limited supply like Bitcoin, it will be a speedy trip to the moon!”