Arthur Hayes, the founder of BitMEX exchange, is optimistic about Bitcoin’s future amidst the current subdued crypto market activity.

In a recent essay, Hayes outlines his bullish path for Bitcoin, suggesting that the Federal Reserve’s rate hike will serve as a catalyst for a Bitcoin bull run.

He predicts that the influx of liquidity resulting from the Fed printing money to pay interest on reserve balances will drive wealthy asset holders to invest in risk assets, including Bitcoin.

The Impact of Fed’s Actions on Bitcoin

Hayes highlights that the interest payments received by wealthy asset holders from the Fed effectively act as a stimulus program. With surplus funds in hand, these asset holders are expected to purchase risk assets such as Bitcoin, gold, and AI tech stocks.

Hayes believes that this injection of “wealth” into the system by the government will have a positive impact on Bitcoin’s price and contribute to a real Bitcoin bull market. He anticipates that the fireworks will begin in the late third and early fourth quarter of this year.

Summer Lull and Bitcoin’s Resilience

Addressing the reduced crypto market activity during the summer months, Hayes acknowledges that the American summer often disappoints in terms of volatility and trading volumes.

However, he remains confident in Bitcoin’s resilience and does not expect a retest of the $20,000 support level or anything close to it.

Hayes suggests that as money gradually flows into global risk asset markets, Bitcoin will establish a strong base of support.

He views the current calm period as an opportunity to gradually increase his allocation to Bitcoin once the US Treasury’s General Account is replenished.

The Money Printer Narrative and Bitcoin’s Potential

Hayes emphasizes that as more pundits discuss the billions of dollars being printed by the Federal Reserve and US Treasury, it will become common knowledge that the money printer is running.

This awareness is expected to further fuel interest in Bitcoin as a hedge against inflation and a store of value. Hayes anticipates that the “money printer goes brrr” narrative will regain prominence, leading to a boom in Bitcoin’s price.