BitMex founder Arthur Hayes asserts that rate cuts aren't sufficient to support Bitcoin's (BTC) price, which is currently struggling below $60,000. He believes that US macroeconomic policies significantly influence Bitcoin.
Hayes challenges the notion that rate cuts from the US Federal Reserve, Bank of England, or European Central Bank will automatically lead to a Bitcoin price increase. He argues that such cuts primarily reduce interest rate differentials between major currencies rather than significantly driving Bitcoin's value up.
Hayes also points out the potential negative impact of the yen carry trade unwind if the Japanese yen strengthens. He suggests that central banks need to expand their balance sheets to counteract the adverse effects of a strengthening yen.
Jerome Powell's recent hints at a possible rate cut have spurred Bitcoin's price rally. However, experts believe a major Bitcoin breakout will require more than just rate cuts — like substantial new money entering the crypto market.
