HomeNewsBitcoin Triggers Wealth Exodus: American Businesses Flock to Yield, Leaving US Banking...

Bitcoin Triggers Wealth Exodus: American Businesses Flock to Yield, Leaving US Banking System Vulnerable, Warns Arthur Hayes

- Advertisement -
  • BitMEX founder Arthur Hayes predicts an increasing departure of businesses from the US banking system, driven by a pursuit of better returns.
  • Hayes forecasts a promising future for Bitcoin, anticipating a strong base of support and no chance of revisiting the $20,000 mark.

Arthur Hayes, the founder of BitMEX, foresees a deepening challenge for the US banking sector as businesses and investors seek to capitalize on higher yields elsewhere, escalating their departure from traditional banking.

According to Federal Reserve Economic Data (FRED), American bank accounts witnessed a withdrawal of $30 billion between May 10th and May 17th, a staggering increase of over $4 billion from the previous week. This reduction in deposits marks a continuation of a trend that began last year, leaving the current total deposits in the US banking system at $17.15 trillion compared to $18.03 trillion a year prior.

- Advertisement -

Hayes postulates that the availability of higher returns from money market funds investing in US treasuries is the main driving force behind this migration.

“More than $1 trillion has been withdrawn from the US banking system since last year. A pivotal question to address is whether this exodus will persist. Will businesses and individuals persistently transfer funds from non-yielding bank accounts into money market funds offering 5% to 6% returns?”

Deducing from the evident trends, Hayes asserts that the continued outflow of capital from the US banking system is highly likely. The lure of increasing one’s interest income tenfold with just a few smartphone taps provides an irresistible allure, creating a relentless drive towards better yields until such a time as banks offer rates that at least match the Fed funds rate.

>> Buy Bitcoin quickly and securely with PayPal, credit card or bank transfer at eToro with low fees and deposit protection. Get started with BTC now. Visit Website <<

- Advertisement -

Hayes also delves into the future of Bitcoin, predicting a bullish trajectory for the cryptocurrency. He confidently suggests that the coin will not plummet to its previous low of $20,000, or anything near it.

“With the gradual influx of capital into the global risk asset markets, a robust support base is likely to take shape. The northern hemisphere’s summer months typically bring disappointing volatility and trading volumes, hence it’s not surprising that those afflicted by ennui have momentarily distanced themselves from crypto trading.”

He intends to utilize this lull to gradually increase his Bitcoin allocation. As the conversation about the billions printed by the Fed and US Treasury and distributed as interest becomes more prevalent, the ‘money printer going brrr’ phenomenon will come to light again. And according to Hayes, when the printer goes ‘brrr,’ Bitcoin is destined to boom.


Best Crypto Exchange for Everyone:

  • Invest in Bitcoin (BTC) and 70+ cryptocurrencies and 3,000+ other assets.
  • 0% commission on stocks – buy in bulk or just a fraction from as little as $10.
  • Copy top-performing traders in real time, automatically.
  • Regulated by financial authorities including FAC and FINRA.

2.8 Million Users

Get Started


- Advertisement -
ETHNews does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to cryptocurrencies. ETHNews is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned.
Jack Williams
Jack Williams
As a Blockchain Analyst, I specialize in analyzing the performance of decentralized systems and optimizing their efficiency. Through data analysis, I provide insights on blockchain technology, smart contracts, and cryptocurrencies to help businesses make informed decisions and improve their operations.
- Advertisment -spot_img