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Cryptocurrency as a smoke alarm for the failing financial system

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Cryptocurrency as a smoke alarm for the failing financial system

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.

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

Analysis based on this information:


In his message on March 17th, Arthur Hayes, the founder of BitMEX, made a significant observation about the Federal Reserve’s Bank Term Financing Plan (BTFP). He noted that the 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. Hayes also highlighted that the yield on two-year Treasury bills has fallen by more than 100 basis points since the outbreak of the banking crisis. All these factors signal the market’s cry for deflation supported by the banking system.

Furthermore, Hayes predicts that the Federal Reserve will eventually listen to the market and either cut down interest rates at its upcoming March meeting or have to turn in the face of a severe recession in the coming months. Although the BTFP plan is mandated to last only one year, it is expected to be extended preventively. This banking crisis has displayed cryptocurrency as a stinky, wasteful smoke alarm for the legal tender-driven Western financial system, indicating that the system is failing to adapt to changing environments.

Cryptocurrency has been a unique solution that has defied the traditional banking system’s norms and principles. The concept behind cryptocurrency is readily adaptable to the changing economic and environmental conditions. With its decentralized, secure, and transparent nature, cryptocurrency is becoming a popular alternative to traditional banking systems. The market’s cry for deflation supported by the banking system further paves the way for cryptocurrency to establish itself as a reliable solution for the current economic conditions.

In conclusion, the message highlights the current state of the banking system and the need for deflation supported by the banking system. Cryptocurrency has yet again proven its worth as a smoke alarm for the failing financial system, a unique solution that aligns well with the changing environment. Hayes’s prediction that the Federal Reserve will eventually listen to the market underscores the need for adaptability and forces traditional systems to rethink their operations.

Keywords such as BitMEX, Federal Reserve, Bank Term Financing Plan, quantitative easing, recession, deflation, and cryptocurrency summarize the essential aspects of the message, making it clear that cryptocurrency is becoming an increasingly attractive alternative system to traditional banking systems.

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