Elon Musk Denounces ‘Heavy Handed’ Fed As Ex-BitMEX CEO Sees $1M BTC Price

Pro-Bitcoin (BTC) Tesla and Twitter CEO Elon Musk said the United States Federal Reserve has been “very heavy-handed” in reducing inflation.

one in twitter debate On March 29, Musk directly criticized US macroeconomic policies, including “excessive government spending”.

Musk: Fed policy is a “serious problem”

Bitcoin and crypto markets remain highly sensitive to interest rate signals from the Fed.

Despite inflation slowly coming down, the Fed continues to raise rates while banks feel the pressure and many collapse.

For Musk, it is already a case of going too far – as the banking crisis spreads to Europe, the US dollar is rapidly losing its appeal, he believes.

Commenting on a thread about dollar supremacy by Genevieve Roch-Decter, CEO of financial insight firm Grit Capital, Musk didn’t mince words.

“Serious issue,” he wrote about the greenback potentially losing its status as the world’s reserve currency.

“US policy has been very harsh, causing countries to want the dollar to drop.”

His words come at a time when many countries are shifting from US dollar trade to China, which has started yuan-denominated transactions with foreign partners.

A keep tweeting Musk said the problem was exacerbated by the Fed, “combined with excessive government spending, forcing other countries to absorb a significant portion of our inflation.”

Related: US Enforcement Agencies Open Fire on Crypto-Related Crime

Markets are divided on how the Fed will act next. With another rate hike decision more than a month away, bets are almost equally in favor of another 25 basis point hike and pause, according to data from CME Group’s FedWatch tool.

Graph of the probability percentage from the Fed. Source: CME Group

The Fed Is Promoting Hyper-Bullish BTC Price Bets

Some believe that given the severity of the banking crisis, the US will have no choice but to reverse its policy.

RELATED: Bitcoin Spikes Above $29K as ‘Fake’ Casts Doubts About BTC Price Strength

One of the most vocal people has been Arthur Hayes, former CEO of crypto exchange BitMEX, who earlier this month released an exclusive roadmap detailing how he thinks events will unfold.

in one of the many recent doAs a result, Hayes doubled down on the bright future for bitcoin with a price target of $1 million.

Amid regulatory attention on fellow exchange Binance, he It has been told BTC Price Action in 2023 as a “Bull Market Driven by FUD”.

At the time of writing on March 30, BTC/USD was trading at around $28,300, according to data from Cointelegraph Markets Pro and TradingView.

BTC/USD 1 hour candlestick chart (Bitstamp). Source: TradingView

The views, opinions and opinions expressed here are solely those of the authors and do not reflect or represent the views and opinions of Cointelegraph.

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