Arthur Hayes: The Bitcoin Bull Market Will Continue

Arthur Hayes stated that loose monetary policies will continue, expressing that the classic four-year cycle of Bitcoin has lost its validity. Hayes emphasized that he does not expect the market to enter a bear trend in the coming months and explained his claims that Bitcoin will not enter a bear market in his new article titled "Long Live the King!"

Hayes argued that the main reasons for the bear cycles experienced in 2014, 2018, and 2022 were not due to "halving," but rather the effects of tightening monetary policies. During these periods, the price of Bitcoin saw a decline of 70-80% from peak levels. Hayes mentioned that the Federal Reserve's start of interest rate cuts and the Trump administration's rhetoric about "heating up the economy" indicate that the era of abundant liquidity has returned.

In particular, the Federal Reserve's decision to reduce interest rates by 25 basis points to 4% in September has drawn investors' attention. Markets are expecting a total of 100 basis points of further rate cuts over the next 12 months. According to Hayes, this situation creates a "structurally bullish environment" for Bitcoin.

Hayes noted that although China has taken a less accommodative stance compared to previous cycles, the goal of combating deflation will not allow for monetary tightening. "Listen to what Washington and Beijing are saying," said Hayes, "It is clearly expressed that money will be cheaper and abundant. Therefore, Bitcoin is pricing this possibility."

Currently, the price of Bitcoin is trading at $122,723. It is crucial for investors to keep an eye on market dynamics and announced economic data.