Research Summary
The latest article by Arthur Hayes discusses the current state of the US banking system and the potential impact on Bitcoin. Hayes argues that the US banking crisis will eventually lead to a fresh round of central bank-driven money printing, which should drive up the price of risk assets like Bitcoin. However, he notes that patience is required as these developments do not happen in a straight line. He also discusses the potential impact of the US Treasury selling debt and the lack of demand for long-term US Treasury bonds.
Actionable Insights
- Monitor the US banking system: The ongoing crisis could lead to a new round of money printing by central banks, potentially driving up the price of risk assets like Bitcoin.
- Be patient: While the destination (money printing, yield curve control, bank failures) is known, the path is not. Market movements do not occur in a straight line.
- Watch the US Treasury’s actions: The selling of debt by the US Treasury and the lack of demand for long-term US Treasury bonds could have significant impacts on the market.
