Arthur Hayes, a former CEO of cryptocurrency exchange BitMEX, believes that BTC may see a rosy future. The American entrepreneur predicts that the first cryptocurrency will reach a whopping $1 million.
Such a scenario will become possible if the Federal Reserve considerably changes its approach to monetary policy. Notably, not so long ago, the regulator once more raised the key rate despite an insignificant drop in inflation.
At the end of March, CEO of Tesla Elon Musk criticized the current macroeconomic policy of the United States, including excessive government spending. Notably, the cryptocurrency market is extremely sensitive to the Fed's signals of interest rate changes amid such spending.
According to Elon Musk, the US dollar lost its investment attractiveness just after the banking crisis reached Europe. Most analysts also expect long-lasting negative consequences for the greenback. Genevieve Roch-Decter, a founder & CEO of Grit Capital, thinks that the US dollar may lose its global reserve currency status in the foreseeable future.
At the moment, there are a lot of opinions about the Fed's further actions. Traders are pricing in another rate increase (by 25 bps) and a pause in the cycle of monetary policy tightening. In addition, the recent Fed’s decision fuels bullish sentiment regarding the BTC price. Most analysts are sure that after the banking crisis, the Federal Reserve has no other way but to reverse its monetary policy.
