Key facts:
The euro hit its lowest level in 20 years against the dollar.
Bitcoin will cost a million dollars, but you have to be patient, according to Arthur Hayes.
Today the euro fell to the same level as the US dollar and with this increases the fear in the markets of an economic recession in Europe, in a context of high inflation throughout the world. And while the Twitter community makes alarming comments, cryptocurrency analyst Arthur Hayes calls for calm, pointing out that the current economic scenario favors bitcoin (BTC) in the long term.
The 1:1 parity of the euro with the dollar occurs at a time when The European Union (EU) is suffering harsh economic consequences from the war between Russia and Ukraine. Which in turn has generated uncertainty about the continuity of the Russian gas supply.
However, among the many reasons discussed, there are many who agree that the European Central Bank (ECB) has failed to take the appropriate measures through its monetary policy based on excessive issuance.
Now, the euro sank to its lowest level against the dollar in 20 years and there is concern about the possibility that this crisis will cause a recession with unforeseen consequences.
At the same time, interest rates are rising much faster in the United States and this is attracting capital to that territory. For investors, yields on US Treasury bonds are higher than those on European debt, which makes them prefer the dollar over the euro.
In that context, there are different perspectives on what will happen, since some economic analysts say that the European Central Bank will raise interest rates to bring them to the same level as the Federal Reserve. With that balance, the euro would rise againjust as points out Bloomberg.
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However, other analysts argue that the ECB is late in raising interest rates and therefore they believe that the euro and the dollar will maintain their parity for a long time.
The circle of destruction has arrived and this is good for bitcoin
From the cryptocurrency community, the perspective of what is happening in the world economy is different. That is what the vision of an ecosystem analyst like Arthur Hayes reveals. For him, the parity of the price of the euro and the dollar only shows that the circle of destruction has begun called “Doom Loop” in the traditional market.
“The Doom Loop has begun. 1 dollar = 1 euro. Get ready for YCC and BTC = $1 million. But be patient, these things take time. he pointed Hayes in a tweet that already has more than 4 thousand reactions from the community.
Hayes showed himself convinced that bitcoin will be worth 1 million dollars in the future and therefore invites the cryptocurrency community to pay more attention to what is happening in the world.
The events that have taken place in the last week have led the bitcoin community to believe that the collapse of the world economy has actually begun.
As CriptoNoticias has reported, on the one hand, Sri Lanka was taken on July 9 by a massive number of inhabitants who protested the national bankruptcy. Meanwhile, on the other, Chinese banks are locking up savers’ money amid a cash crisis. In both cases, bitcoin has emerged as the protagonist.