Arthur Hayes: If the United States experiences an economic recession, the Federal Reserve will increase its money printing efforts, thereby driving a surge in Bitcoin

BitMEX co-founder Arthur Hayes has released his latest article, "Sugar High," discussing why the Japanese yen's interest rate hike is still insufficient and other issues. Hayes stated that as we enter the final stage of the third quarter, fiat liquidity conditions are very favorable for cryptocurrency holders. Central banks around the world, led by the Federal Reserve, are now lowering funding costs. The Fed cuts interest rates when inflation is above target while the U.S economy continues to grow. The Bank of England and European Central Bank may continue to cut rates at upcoming meetings. Treasury Secretary Yellen promises to issue $271 billion in treasury bills by year-end and conduct a $30 billion buyback. This will add $301 billion in dollar liquidity to financial markets. There remains about $740 billion in US Treasury accounts (TGA), which can be used to stimulate markets and help Harris win.

The article also wrote: "Some people point out that historically, when the Fed cuts interest rates, stock markets fall. Some worry that a Fed rate cut is a leading indicator of recession for both America and developed market economies overall. This might be correct but imagine what they would do if there were indeed an economic downturn with inflation above target and strong economic growth - they would increase money printing significantly thereby increasing money supply substantially which could lead to inflation detrimental for certain types of businesses but for assets like Bitcoin with limited supply it would be a rapid journey towards moon."