BitMEX founder Arthur Hayes says that the macro environment is starting to look favorable for Bitcoin (BTC).
In a new interview on the “What Bitcoin Did” podcast, the crypto veteran says that the government will do what it usually does during a debt deadline crisis, which is wait until the last moment and before raising the limit.
According to Hayes, lawmakers will likely use the debt ceiling crisis as an opportunity to get what they want from their political rivals.
“Usually what happens is they delay, delay, delay… Then you know, they get to the date… The market starts tanking, and then they get religion and [say] ‘Okay, yeah, sure, we’re just going to raise the debt ceiling.’
Why do we go through this song and dance?
So the Republicans are probably going to get some concession on some particular piece of policy they think is going to be important in the next election from the Democrats and then they’re in the last minute they’re going to come to a deal and they’ll raise it by some token amount and then everybody’s happy again.”
Hayes goes on to say that the raising of the debt limit, along with the issuance of fresh liquidity to fund the US government’s debt and potential financial disruptions in the coming months could provide the catalysts for a burst to the upside for Bitcoin.
“It’s gonna be interesting, the timing of that, because is that going to coincide with sort of like the fall harvest cycle, when we usually get financial disruption events, with the banking crisis then, you have the federal government issuing trillion of dollars of debt because they need to fund themselves?
You’re basically putting this powder keg together of a situation that’s going to be exploding in Q3 and Q4 this year, and I think ultimately it will be good for Bitcoin.”
At time of writing, Bitcoin is trading for $27,095.
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