Key Takeaways:
- The price of Bitcoin (BTC) rallied amid Sport Bitcoin ETF approval speculations.
- BitMEX exchange Co-Founder Arthur Hayes believes the US military is behind the rally.
YEREVAN (CoinChapter.com) — Earlier this week, the price of Bitcoin (BTC) climbed above the $35,000 mark, an achievement not seen in 17 years.
Experts attributed the rally to the prospects of the Securities and Exchange Commission (SEC) approving a Bitcoin Exchange-Traded Fund (ETF) soon. However, the US military could be behind the BTC rally.
Crypto expert sees US Army’s handwriting in the BTC Price Pump
In a recently published essay on his Substack page, Arthur Hayes denied that the recent crypto market rally had anything to do with sentiments surrounding spot Bitcoin ETF. Hayes is the co-founder and former manager of the BitMEX exchange.
Instead, the crypto expert argued that the actual reason behind the BTC price surge lies with the Pentagon. According to him, the US Government is pursuing a foreign policy that brings unbearable expenses to the economy. These, in turn, have an impact on the markets, including crypto prices.
“Directly after the Biden speech, Bitcoin – along with gold – is rallying against a backdrop of an aggressive selloff in long-end US Treasuries. This isn’t speculation as to an ETF being approved – this is Bitcoin discounting a future, very inflationary global world war situation,”
he argues.
Hayes argues that President Joe Biden’s open-ended commitment to supporting Israel’s war effort against Hamas is responsible for the surge in the crypto markets.
“As the Israeli military response escalated and America stayed silent, the US Treasury market resumed its selloff. It became increasingly clear that the future cost of assumed military support to Israel, and other allies who would surely be challenged, was being discounted by the market,”
he wrote in his piece titled The Periphery.
The US government has already sent around $77 billion to help Ukraine.
While this has created resentment among Republican lawmakers, President Biden doesn’t seem to care. He has announced that his Administration will also leave no stone unturned to fund Israel. Immediate assistance could be to the tune of $14 billion.
This, Hayes fears, may drag the US into a war with Israel’s arch-rival Iran that will be costlier than its operation in Afghanistan.
Actions of the US military send investors to Bitcoin (BTC)
According to Hayes, the expanding US military budget, combined with increased government borrowing, could lead to significant capital expenditure in the future.
To back his claims, the BitMEX derivatives exchange founder pointed out that institutional investors have already started divesting from bonds and treasury bills. This, per his reasoning, is in anticipation of higher US military spending soon. By diversifying their portfolio, they are seeking returns in alternative asset classes.
With the expanding US military spending, long-term US Treasury bonds no longer provide safety for investors. This notion will send investors looking for new, safer alternatives.
With realistic fears of wartime inflation, gold and Bitcoin are taking center stage.
“If long-term US Treasury bonds offer no safety for investors, then their money will seek out alternatives. Gold, and most importantly, Bitcoin, will begin rising on true fears of global wartime inflation,”
he writes.
With the buzz around spot Bitcoin ETF still around, Hayes has offered a unique perspective to the recent rally in BTC price.
The post Bitcoin ETF FOMO is Not Pumping BTC Price to $35K: It’s The US Military! appeared first on CoinChapter.
