BitMEX co-founder Arthur Hayes on Wednesday predicted a sharp rise in Bitcoin (BTC) as geopolitical conflicts escalate, driving inflation and increased government spending. In a blog post, Hayes argued that the U.S. government’s financial response to conflicts in the Middle East would spur money printing and fuel the next bull run for the Bitcoin price. “We know that war is inflationary. We understand that the U.S. government must borrow money to sell bombs to Israel,” Hayes wrote. “We know that the Fed and the U.S. commercial banking system will buy this debt by printing money and growing their balance sheets. Therefore, we know that Bitcoin will rise stupendously in fiat terms as the war intensifies.” Hayes emphasizes that global conflicts, especially those involving the U.S., tend to lead to monetary expansion. He suggests that with more dollars entering the economy through government debt, Bitcoin—a decentralized asset—stands to benefit as investors seek protection from inflation. “An intensified Middle Eastern conflict will not destroy any critical physical infrastructure supporting crypto. Bitcoin and crypto will rise as energy prices spike higher. The hundreds of billions or trillions of newly printed dollars will re-energize the Bitcoin bull market,” he noted. Hayes referenced the Arab oil embargo of 1973 and the Iranian […]