Elon Musk criticizes the ‘heavy-handed’ Federal Reserve as the former CEO of BitMEX predicts a BTC price of $1 million

Musk discloses that he does not support the Fed’s inflation policy, while Arthur Hayes asserts that U.S. economic decisions drive the BTC price to $1 million.

Musk directly criticized U.S. macroeconomic policy, including “excessive government spending,” in a Twitter debate on March 29.

Bitcoin and cryptocurrency markets remain highly sensitive to Federal Reserve interest rate policy signals. Despite a gradual decline in inflation, the Fed has continued to raise interest rates despite pressure on banks and several bank failures.

For Musk, this is already a case of going too far; he agrees that the U.S. currency is rapidly losing its appeal as the banking crisis contagion spreads to Europe.

The United States policy has been too authoritarian, causing countries to abandon the dollar. His remarks come when several nations are moving away from U.S. dollar trade, emphasizing China, which has begun transacting in yuan with foreign partners.

Musk added in a subsequent tweet that the Fed, “Combined with excessive government spending, which forces other countries to absorb a significant portion of our inflation,” intensified the problem.

The markets remain divided regarding the Fed’s future actions. With the next rate hike decision not expected for more than a month, wagers favor a 25-basis-point increase and a pause almost equally, according to CME Group’s FedWatch Tool data.

Some believe that due to the severity of the banking crisis, the United States will have no option but to change its policy.

Arthur Hayes, the former CEO of the cryptocurrency exchange BitMEX, has been among the most outspoken critics. Earlier this month, he released a roadmap detailing how he believes events will transpire.

In one of his recent tweets, Hayes doubled down on Bitcoin’s bright future and set a price target of $1 million. In oversight for Binance, he described BTC price action in 2023 as a “bull market fueled by FUD.”

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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.