{"id":6160,"date":"2025-01-05T13:49:34","date_gmt":"2025-01-05T13:49:34","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=6160"},"modified":"2025-01-05T13:49:34","modified_gmt":"2025-01-05T13:49:34","slug":"arthur-hayes-china-interest-rate-bazooka-will-goose-bitcoin-prices","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=6160","title":{"rendered":"Arthur Hayes: China Interest Rate \u2018Bazooka\u2019 Will Goose Bitcoin Prices"},"content":{"rendered":"
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At its fourth quarter meeting on Dec. 27, the People\u2019s Bank of China committee (POBC) proposed a more dovish (low interest rate) policy going forward.<\/p>\n

At the same time, the US Fed has different plans.<\/p>\n

China Announces Interest Rate Cut<\/h2>\n

Financial analysts expect the bank to make adjustments to the target funds rate so that credit demand aligns better with monetary policy, according to<\/a> Reuters. As a result, crypto analysts expect a big wave of monetary support for Bitcoin prices in the Middle Kingdom\u2019s yuan printing press.<\/p>\n

China\u2019s central bank issued a statement on Friday announcing a cut to the banks\u2019 reserve requirement ratio and interest rates at \u201ca proper time.\u201d The central bank says the PBOC is likely to further slash China\u2019s interest rates from the current target of 1.5% sometime soon in 2025.<\/p>\n

The PBOC last cut rates to 1.5% from 1.7% in September, the same month as the Federal Reserve pivoted to a rate-cutting regime. Moreover, China\u2019s 10-year and 30-year treasury yields both hit record lows on Friday over expectations of fresh monetary easing.<\/p>\n

Arthur Hayes Predicts \u2018Glorious\u2019 Bitcoin Rally<\/h2>\n

The interest rate cut at China\u2019s central bank will help to counter a deflationary yuan that threatens to spiral into debt-crippling loan revaluation. But, it will also push up the prices of the basket of financial goods, especially stocks and cryptocurrencies.<\/p>\n

South Africa cut its<\/a> main overnight money market rate by 0.25% to 7.75% in November.<\/p>\n

BitMEX co-founder Arthur Hayes predicted the<\/a> next rate cut in Beijing will combine with the Fed\u2019s low rate regime and cause a \u201cglorious\u201d rally for Bitcoin and other crypto assets in 2025.<\/p>\n

Hayes is an influential macro strategic analyst for the price levels of major cryptocurrencies such as Bitcoin and Ethereum.<\/p>\n

Immediately after the US Federal Open Market Committee (FOMC) announced a rate cut in September, Bitcoin\u2019s price rocketed above<\/a> the $60,000 level. Since then, the little orange coin has reached record high levels of $100,000.<\/p>\n

Seven months ago in May, Hayes wrote on<\/a> his Medium blog that when China brings out the monetary \u201cbazooka,\u201d buying a Wall Street Bitcoin ETF will be a no-brainer for regulated investors in the US.<\/p>\n

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\u201cIf my theory becomes reality, it is trivial for any institutional investor to buy one of the US-listed Bitcoin ETFs,\u201d Hayes wrote. \u201cBitcoin is the best-performing asset in the face of global fiat debasement, and they know it.\u201d<\/p>\n<\/blockquote>\n

In addition to a rising Coinbase premium index, ETF flows for Bitcoin are two strong indicators that mainstream investors are flocking back to Bitcoin in January.<\/p>\n

The post Arthur Hayes: China Interest Rate \u2018Bazooka\u2019 Will Goose Bitcoin Prices<\/a> appeared first on CryptoPotato<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

At its fourth quarter meeting on Dec. 27, the People\u2019s Bank of China committee (POBC) proposed a more dovish (low interest rate) policy going forward. At the same time, the US Fed has different plans. China Announces Interest Rate Cut Financial analysts expect the bank to make adjustments to the target funds rate so that […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-6160","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/6160","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6160"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/6160\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6160"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6160"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6160"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}