Hayes: Prolonged Iran conflict could force Fed easing, boost BTC

Arthur Hayes has argued that a prolonged military intervention in Iran by the U.S. and Israel would likely compel the Fed to ease its monetary policy, potentially serving as a strong bullish catalyst for Bitcoin (BTC), DL News reported. He stated that U.S. military involvement in the Middle East has historically led to fiscal expansion and an increased money supply. Citing the rate cuts that followed the Gulf War and the Sept. 11 attacks, Hayes stressed that the solution to war has historically been cheaper and more abundant money. He added that the right time to buy BTC is when the Fed either cuts interest rates or expands liquidity. Currently, BTC is trading at around $66,000, a level approximately 50% below its high from October of last year.