Bitcoin’s ‘KISS Of Death’? Arthur Hayes Warns Of Recession Before Surge

Arthur Hayes, former BitMEX CEO, shared his thoughts on the trajectory of Bitcoin and financial markets under the renewed presidency of Donald Trump in his latest blog post titled “KISS of Death.” Hayes predicts that a convergence of fiscal and monetary policies could drive Bitcoin’s price up to $1 million during the Trump 2.0 era, but only after a period of recession-driven turmoil.

Hayes emphasizes the importance of focusing on liquidity as the core driver of asset prices, rather than reacting to sensational headlines. He believes that if the U.S. government prints significant amounts of money at lower rates, risk assets like Bitcoin could see a surge.

The analysis is based on the premise that President Trump will debt finance his “America First” agenda rather than pursue austerity measures. Hayes contrasts Trump with past figures like Andrew Mellon and suggests that Trump is more likely to loosen credit conditions to boost the economy.

Hayes highlights the potential for a recession triggered by Trump’s spending cuts, leading to rate cuts and fresh liquidity from the Federal Reserve. He also discusses the significant amount of debt that needs to be rolled over in the coming years, which could necessitate further money creation and lower rates.

Despite his bullish long-term outlook, Hayes acknowledges that Bitcoin’s immediate future may be rocky, with potential short-term price corrections. He advises staying focused on liquidity and accumulating Bitcoin during any major dips.

In conclusion, Hayes suggests that the current turmoil in traditional markets could pave the way for a new round of monetary expansion, ultimately benefiting Bitcoin. He urges investors to stick to their strategy and buy Bitcoin, emphasizing the importance of staying focused on liquidity.

As of the time of writing, Bitcoin is trading at $83,725.