If Trump escalates actions against Iran, the Federal Reserve may be forced to loosen, which is bullish for Bitcoin

On March 2nd, Arthur Hayes released his latest article titled "iOS Warfare," analyzing the potential linkages between war, Federal Reserve policies, and the crypto market amid the escalation of U.S. military actions against Iran.

Hayes pointed out that since the Gulf War in 1990 and the "War on Terror" in 2001, whenever the U.S. has launched or escalated military operations in the Middle East, the Federal Reserve has often responded by cutting interest rates or releasing liquidity to offset economic shocks. He believes that if the Trump administration continues to escalate tensions with Iran, fiscal pressures and financial market volatility could provide the "political cover" for the Fed to cut rates or restart easing policies.

Hayes stated that his reasoning is quite simple: the longer and more costly the war, the greater the likelihood that the Fed will loosen monetary policy, and cheaper, more abundant dollar liquidity generally benefits risk assets, including Bitcoin.

Regarding trading strategies, he recommends investors "wait for signals," meaning to increase exposure to Bitcoin and high-risk crypto assets (such as HYPE) only after the Fed clearly cuts rates or initiates a new round of easing. #Gate广场发帖领五万美金红包