Bitcoin Price Set to Skyrocket on Potential Oil Crisis: Arthur Hayes

• Arthur Hayes, the co-founder of BitMEX, has published an essay outlining potential situations that could cause a global oil supply shortage and lead to Bitcoin’s price skyrocketing.
• Hayes argued that such a situation would likely result in central banks around the world returning to a market-friendly loose monetary policy.
• He detailed three possible scenarios that could lead to an oil supply shortage: Iran closing the Strait of Hormuz, large oil producers reducing production, or critical oil/gas infrastructure being taken offline due to sabotage.

What is Bitmex?

BitMEX is a cryptocurrency derivatives trading platform founded by HDR Global Trading Limited. It provides traders with access to global financial markets using only Bitcoin as collateral. The platform offers its users high liquidity, low fees and up to 100x leverage on certain trades. Additionally, its risk management system helps protect traders from extreme market volatility.

Arthur Hayes’ Essay

Arthur Hayes published an essay titled “Curve Ball” on Thursday which outlines “realistic potential situations” that could make oil prices boom and consequently drive Bitcoin’s price higher. He believes the most probable scenario would be if Iran closed off the Strait of Hormuz – one of the world’s largest oil chokepoints between the Persian Gulf and the Gulf of Oman – as it would remove 17.3 million barrels per day from global markets, making their marginal cost extremely expensive. Furthermore, he predicts this could then lead to central banks across the world returning to a market-friendly loose monetary policy which would set off a chain reaction across multiple sectors and asset classes including cryptocurrencies like Bitcoin.

Oil Supply Shortage

Hayes identified three possible futures that could lead to an energy crisis: Iran escalating its conflict with Israel/Saudi Arabia by closing off the Strait of Hormuz; large oil producers (Russia, Saudi Arabia etc.) materially reducing their output; or critical oil/gas infrastructure getting taken offline due to deliberate sabotage. All three scenarios can have drastic implications for global energy markets if they occur simultaneously resulting in an unprecedented shortage in fuel supplies across many nations worldwide leading them into economic turmoil and instability as well as accelerating inflation rates significantly above target levels for many countries such as China and India who already suffer from higher than average inflation rates due to their developing economies..

Federal Reserve Response

If any of these scenarios were realized it is very likely that all major central banks around the world will need to act quickly and decisively in order to prevent further economic fallout resulting from high energy costs draining consumers‘ purchasing power and creating ripple effects throughout various sectors such as transportation, manufacturing etc.. As a result they are likely return back towards more aggressive quantitative easing policies in order stimulate aggregate demand by pumping more liquidity into financial systems through money printing methods similar those seen during preceeding years after 2008 financial crash when Federal Reserve initiated QE1 followed by QE2 & QE3 programs respectively with aim reviving US economy after Great Recession period causing huge devaluation dollar currency against other major currencies globally..


In conclusion, Hayes suggested investors consider how they may want position themselves should any of these events occur since such occurrences are not outside realm possibility given current geopolitical tensions between various countries worldwide currently coupled increasing strain placed upon resources like crude oil due rapid population growth industrialisation happening especially among developing states east Asia Africa where demand fuels has grown exponentially past decade or two without corresponding increase supply which puts pressure upon existing reserves sources producing nations making them vulnerable sudden changes conditions caused either natural manmade disasters alike thus potentially leading dramatic surge prices commodities particularly petroleum products..