Arthur Hayes: US Government's Hidden QE Will Drive Next Crypto Rally

The Next Crypto Rally May Be Fueled by "Stealth QE", Warns Arthur Hayes Arthur Hayes, the former CEO of BitMEX, has issued a stark warning to cryptocurrency investors - the U.S. government's hidden quantitative easing (QE) policies could be the spark that ignites the next major bull run in the digital asset markets. According to Hayes, the combination of tight liquidity conditions and the country's soaring national debt may soon force the Treasury and Federal Reserve to quietly implement a "stealth QE" program. This covert cash injection into the financial system, he argues, could have profound implications for the price of top cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). As Hayes points out, the U.S. government has accumulated trillions in new debt over the past year, much of it financed through bond sales. With the Fed now rapidly raising interest rates to combat inflation, this debt is becoming increasingly difficult to service. Hayes believes the powers-that-be may resort to behind-the-scenes money printing to alleviate this burden, even if it means stoking the flames of inflation further. For crypto investors, this dynamic could translate into a major rally, as the influx of "easy money" typically finds its way into speculative assets. Hayes cites the Fed's pandemic-era QE as a prime example, noting how it fueled a multi-year bull market across the cryptocurrency landscape. While the timing and scale of this potential "stealth QE" remain uncertain, Hayes' warning underscores the influential role that macroeconomic forces can play in shaping the future of the crypto market. As the industry continues to evolve, savvy investors would do well to monitor these high-level developments closely.