US Fed’s Money Printing and Banking Crisis Are Back, Arthur Hayes’ Bitcoin Prediction
US Bank Run: Banking stocks fall due to Federal Reserve impact on FOMC interest rate decision day It kept the fund interest rate unchanged at 5.25%-5.5%, the highest level in 23 years. Although Chairman Jerome Powell has ruled out any rate hikes, he has stated that the central bank is not ready to cut rates in March.
Selling pressure on US bank stocks increased as New York Community Bancorp (NYCB) fell 38% to close at $6.47 after cutting its dividend and posting a loss, reigniting fears of a banking crisis. Bank holding company New York Community Bank is adapting to the demands of being a major bank after purchasing assets and liabilities from Signature Bank, CEO Thomas Cangemi said.
KBW Regional Banking Index fell 6% to $101.99; This was the biggest daily decline since last year’s banking crisis due to bank runs at multiple banks, including Silicon Valley Bank.
The Fed has no plans to cut interest rates and Bank Term Funding Program rescues (BTFP) end inside Bank runs are likely to return to the US banking sector in March. Small banks are still feeling the pain.
Billionaire Arthur Hayes Says Money Printing Is Back
Fed Chairman Jerome Powell and Treasury Secretary Janet Yellen will announce that money will be printed soon. New York Community Bancorp’s surprise loss from loan loss reserves increased 10 times compared to expectations.
Additionally, 10- and 2-year U.S. Treasury yields fell after the FOMC, signaling that the market expects some bank bailout funds to offset bank losses. The US 10-year Treasury note (US10Y) returned to 3.946%, below the 4% level on Thursday.
BitMEX co-founder Arthur Hayes BTFP and the discount window won’t help, he says, “because CRE and multifamily mortgage loans are not eligible collateral.”
He expects Bitcoin to be volatile, but if the stock prices of NYCB and other banks continue to fall, another bailout could be coming soon. Bitcoin price will rise similar to the March 2023 price movement.
The Fed and Treasury Department are more likely to comply with rate cuts at the May and June FOMC meetings. Black Rock and other banks expect the Fed to cut rates in June as the latest PCE inflation, employment and retail sales data show the resilience of the US economy.
Arthur Hayes remains bullish on Bitcoin’s long-term price of $1 million amid the banking crisis and Bitcoin halving. He has “my trigger finger on the buy button, waiting for a few crappies to show up on my radar.”
BTC price is down 2% in the last 24 hours and the price is currently trading at $42,138. The 24-hour low and high are $41,879 and $43,717 respectively. Additionally, the 15% increase in trading volume in the last 24 hours indicates that investors’ interest has increased.What have the Fed and Treasury done in the recent period when US real estate prices have fallen and banks have failed around the world?
Money Printer Go Brrrr$BTC = $1mm
Yachtzee
pic.twitter.com/adgkkNT2Az
— Arthur Hayes (@CryptoHayes) February 1, 2024
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Varinder has 10 years of experience in the Fintech industry and has been dedicated to blockchain, crypto and Web3 development for over 5 years. A tech enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in more than 5,000 news stories, articles, and articles. Varinder believes in the great potential of future innovative technologies with parofix Media. He currently covers the latest updates and developments in the crypto industry.
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