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Inflation and War Set to Light Up Bitcoin, Says BitMEX Co-founder

Arthur Hayes, the former head honcho of BitMEX, just dropped another bomb on the crypto world. According to Hayes, Bitcoin (BTC) is primed for a massive bull run, but it won’t be for the usual reasons. Instead, geopolitical tension is the hidden trigger. In his recent blog post, he connects the dots between wars, inflation, and how the U.S. will likely keep printing money like it’s going out of style.

The War-Money Printing Loop

Hayes didn’t waste any time drawing parallels between the U.S. government’s spending habits and Bitcoin’s future price moves. He sees the conflict brewing in the Middle East as the perfect storm for Bitcoin. The U.S., he explains, will pour cash into its defense budget, especially to arm Israel, which means one thing—debt and more debt.

So, with that debt comes fresh printed dollars. And when that happens, Hayes believes Bitcoin will shine. “War is inflationary. We know that Bitcoin rises when fiat gets weaker,” Hayes pointed out, showing how money printers fuel BTC’s fire.

Energy, Inflation, and Bitcoin’s Role

Hayes pulled a couple of historical throwbacks to make his point. He mentioned the 1973 Arab oil embargo and the Iranian revolution of 1979. Back then, gold performed incredibly well during energy crises and inflation spikes. Now? Bitcoin’s turn, he says, but with a modern twist.

As energy prices shoot up due to the ongoing Middle Eastern conflict, Hayes believes Bitcoin will benefit. It’s a hedge, he suggests, against fiat systems drowning in debt. According to Hayes, Bitcoin acts like “stored energy” in financial form, especially when real-world energy markets are in chaos.

Sizing Positions and Surviving Volatility

But it’s not all moon talk. Hayes warns that volatility is the name of the game, so traders better be ready. He says Bitcoin’s path won’t be smooth. The global markets might shake things up, so he recommends adjusting position sizes accordingly. While he’s bullish on Bitcoin, Hayes admits he’s cutting down exposure to smaller tokens because, well, better safe than sorry.

His last nugget? “Keep a cool head,” Hayes says. Don’t let emotions guide trades—let Bitcoin fight the inflation battle for you.