French Central Bank’s Deficit: The “Perfect Storm” for Bitcoin’s Rise, According to Arthur Hayes

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Ah, France! The land of romance, croissants, and… ballooning financial deficits! Who knew that a net loss of 7.7 billion euros could be the perfect recipe for a Bitcoin bonanza? According to Arthur Hayes, the co-founder of BitMEX, France’s ongoing financial drama might just kick off a new wave of money printing, and guess who’s waiting with open arms? That’s right-Bitcoin! 🍾💸

For those of you who haven’t been keeping track, the Banque de France (BdF) recently announced that it had lost a cool 7.7 billion euros in the fiscal year 2024, largely thanks to sky-high interest payments that made their net interest income plummet like a lead balloon. If you’re wondering what caused such a disastrous turn, just take a look at France’s government deficit-now a staggering 168 billion euros, which is 5.8% of their GDP. What’s the EU’s limit on that, you ask? A modest 3%. So, yeah, it’s not looking great. 😬

The BdF’s recent performance is about as bad as a soufflé that refuses to rise. And with capital fleeing France faster than a Parisian in a traffic jam, things are looking even worse. But don’t despair! If you ask Arthur Hayes, all this deficit drama is a golden opportunity for the European Central Bank (ECB) to start printing money. Trillions of euros, to be precise. And guess where that liquidity will end up? That’s right-straight into Bitcoin’s eager embrace. 🎉🪙

Bitcoin surge

ECB’s Big Decision: Print Now or Print Later? 🤔

For those who haven’t been paying attention, France isn’t alone in this mess. The French bonds and debt? 60% of it is owned by foreign entities, particularly the Germans and Japanese. But here’s the kicker: German and Japanese investment, which used to help cover France’s budget, is starting to slow down, leaving a gaping hole. And as Hayes puts it, if the ECB doesn’t act now, it’s basically game over. Print now, or print later-either way, they lose control. 😂

“My thesis is basically the ECB prints now, or they print later, and in both cases, they lose control, because in both cases, the people would rather either default, redenominate, do capital controls, print the money, have their way of life.” – Arthur Hayes

So, what’s next? According to Hayes, the ECB is in a real bind. They could print money now to support French spending or wait and risk further chaos in the European banking system. Either option is a bit like picking your poison, but here’s the twist-either way, the ECB will end up inflating the currency. And you know what happens when central banks print more money, right? That’s right-Bitcoin thrives. 🍻

If history is anything to go by, the last time we saw a massive money-printing extravaganza, Bitcoin went on a wild ride, skyrocketing over 1,050% from $6,000 in March 2020 to a staggering $69,000 by November 2021. So, perhaps the only thing that might soar higher than French government debt is the price of Bitcoin! 🚀📈

Bitcoin explosion

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2025-10-01 13:23