BitMEX founder Arthur Hayes says the macro environment is starting to look favorable for Bitcoin (BTC).
In a new interview on the “What Bitcoin Did” podcast, the crypto veteran say that the government will do what it usually does during a debt crisis, which is to wait until the last minute and before raising the limit.
According to Hayes, lawmakers are likely to use the debt ceiling crisis as an opportunity to get what they want from their political rivals.
“Most of the time what happens is they procrastinate, procrastinate, procrastinate…Then you know, they get to the date…The market starts to tank, and then they get religion and [say] “Okay, yes, of course, we’re just going to raise the debt ceiling.”
Why are we going through this song and dance?
So the Republicans will probably get a concession from the Democrats on some piece of policy that they think will be important in the next election and then they’ll come to a last minute deal and they’ll do it with a token amount increase it and then everyone will be happy again.’
Hayes continues that the increase in the debt limit, along with the issuance of new liquidity to fund US government debt and possible financial disruptions in the coming months, could be the catalyst for Bitcoin’s explosion.
“It’s going to be interesting, the timing of that, because is that going to coincide with some kind of fall harvest cycle, when we usually get financial disruptions, with the banking crisis then, do you have the federal government having those trillions of dollars in debt because they have to fund themselves?
You’re basically putting together this powder keg of a situation that’s going to explode in Q3 and Q4 this year, and I think it’s going to be good for Bitcoin in the end.
At the time of writing, Bitcoin is trading at $27,095.
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