Arthur Hayes: The Federal Reserve has entered the era of "fiscal dominance", and Bitcoin will usher in a new round of increases due to the restart of QE

Odaily News Arthur Hayes, co-founder of BitMEX, published a long article, using the form of a satirical novel to point out that Federal Reserve Chairman Powell is trapped in a fiscal-led "forced obedience" pattern, and his shift to loose monetary policy is inevitable. He emphasized that the Federal Reserve will be forced to restart quantitative easing (QE) to pay for the huge fiscal deficit in the United States, and the recovery of US dollar liquidity will drive Bitcoin to strengthen.
Hayes analyzed that although the market is still debating the pros and cons of tariffs, what is really worth celebrating in the crypto market is the imminent return of QE. He expects this process to begin this summer and pointed out that the Fed's slowing down of the QT rhythm is a signal.
He concluded that fiscal dominance means that the Federal Reserve will give up its independence and prioritize ensuring that the government can finance at affordable interest rates, which is the core reason for high inflation. Faced with a new round of capital release, Bitcoin will benefit in the long term due to its "digital gold" attributes.