Fed Easing May Follow US Military Action in Iran, Boosting Bitcoin

Bitcoin analyst Arthur Hayes has made a connection between US military action in the Middle East and Federal Reserve monetary policy. According to his analysis, every major US military campaign since 1985 has been followed by Fed easing.

Hayes cited historical examples of this pattern, including the 1990 Gulf War under President George H.W. Bush, the wars in Afghanistan and Iraq following the September 11 attacks, and President Obama's troop surge in Afghanistan. In each case, he noted that the Fed lowered interest rates or implemented quantitative easing.

Hayes believes that the current conflict with Iran could follow this pattern, leading to a boost in the value of Bitcoin. However, he advises investors to wait for actual rate cuts before buying the cryptocurrency and select altcoins.