Arthur Hayes Challenges Conventional Wisdom on Bitcoin and Interest Rates

Arthur Hayes Challenges Conventional Wisdom on Bitcoin and Interest Rates



In a recent blog post, macro-analyst Arthur Hayes challenges the commonly accepted notion about the relationship between Bitcoin and interest rates. According to Hayes, traditional economic theories are becoming obsolete, especially given the U.S. government's huge debt burden.



Hayes criticizes central banks and governments for relying on outdated economic theories to address current challenges. He notes that the Federal Reserve has increased its key interest rate from 0.25% to 5.25% to combat inflation, which has so far been effective. However, Hayes warns that inflation might remain stubbornly high, especially if nominal GDP growth continues to outpace government bond yields. Based on Atlanta Fed data, he points out that nominal GDP growth for Q3 is at an astounding 9.4%, while the 2-year U.S. Treasury yield is only 5%.



Hayes


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