US businesses looking for yield will withdraw vast sums of funds from the US banking system, according to Arthur Hayes

Arthur Hayes, a co-founder of BitMEX, predicts that US banks will soon feel the effects of companies wanting to profit despite historically low-interest rates.

According to a new article by Hayes, the “exodus” of customers from the US banking sector will only worsen.

Depositors in the United States withdrew $30 billion from May 10-17, as recorded by the Federal Reserve Economic Data (FRED) system.

More than $4 billion was added to the total since last week. The total amount of money deposited in US banks fell to $17.15 trillion from $18.03 trillion a year earlier.

Since last year, almost $1 trillion has been removed from the US financial system. The pressing issue coming ahead is whether or not this migration will persist.

According to reason, the correct response is an emphatic “yes.” After all, why wouldn’t they if they could easily double their interest earnings by ten with only a few taps on their phones? Until US banks can provide competitive rates that are at least equal to the Fed funds rate, the private sector will continue to move money out of US banks.

In addition, Hayes claims that a bull market is about to begin for Bitcoin and that the price will never go below $20,000.

“Bitcoin will maintain its value in this market. Can we retest $20,000 or even get close? A solid foundation will be established when funds gradually enter the worldwide markets for risky assets. I’m unsurprised that degens with boredom issues have stopped trading cryptocurrencies since volatility and trade volumes typically disappoint in the northern hemisphere’s summer. As soon as the General Account at the [US] Treasury is refilled, I want to take advantage of the relative quiet and gradually raise my Bitcoin holdings.

As more and more commentators discuss what has become of the trillions of dollars created by the Fed and the US Treasury and distributed as interest, it will once again become general knowledge that the money printer is going brrr. And as the printer sputters, Bitcoin increases in value.”

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