Founder of BitMEX: BTFP plans to print $4.4 trillion, and the Federal Reserve is about to reverse the tightening cycle

On March 17th, Arthur Hayes, the founder of BitMEX, wrote that the Federal Reserve’s Bank Term Financing Plan (BTFP) had undertaken quantitative easing of $4.4 trillion in another way, even exceeding the $4.189 trillion printed in response to the COVID crisis. Although the BTFP plan is mandated to last only one year, it will almost certainly be extended preventively. The Federal Reserve is expected to either start cutting interest rates at its upcoming March meeting or a severe recession in a few months will force it to turn. Since the outbreak of the banking crisis, the yield on two-year Treasury bills has fallen by more than 100 basis points. The market is crying out for deflation supported by the banking system, and the Federal Reserve will eventually listen to the market. In this banking crisis, cryptocurrency has once again proven to be a stinky, wasteful, smoke alarm for the legal tender driven Western financial system.

Interpretation of this information:

Arthur Hayes, founder of BitMEX, believes that the Federal Reserve’s Bank Term Financing Plan (BTFP) has undertaken quantitative easing of $4.4 trillion in response to the COVID-19 crisis. The plan, which is meant to last only one year, is expected to be extended as the market demands deflation supported by the banking system. The yield on two-year Treasury bills has fallen by over 100 basis points, and the Federal Reserve is expected to start cutting interest rates at their March meeting or be forced to turn in response to a recession. Cryptocurrencies have once again proven to be a smoke alarm for the Western financial system.