TechFlow News — Arthur Hayes, founder of BitMEX, published a blog post on X stating that Bitcoin has formed support between $30,000 and $35,000. This is why he purchased put options with a strike price of $35,000 expiring on March 29, 2024. Once Bitcoin drops below $35,000, Arthur Hayes will begin accumulating.
Arthur Hayes' view: "Bitcoin is anticipating that the Bank Term Funding Program (BTFP) will not be renewed. This event would be negative because the Federal Reserve still hasn't cut rates enough to push 10-year Treasury yields into the 2% to 3% range. Until interest rates fall to that level, these banks cannot survive without official support provided through the BTFP. The strong performance of financial markets has given Yellen and Powell a false sense of confidence—that the market can allow some non-TBTF banks to fail once the BTFP expires. Therefore, they believe they can terminate the BTFP without triggering a negative market reaction. However, I believe the opposite is true: ending the BTFP will trigger a small financial crisis, forcing the Fed to stop talking and start taking action—including rate cuts, slowing quantitative tightening (QT), and/or restarting money printing via quantitative easing (QE). Bitcoin’s price action tells me I am right, and they are wrong."
