Arthur Hayes Predicts Boost in Cryptocurrency Prices Due to Central Bank Easiness

Arthur Hayes, co-founder of BitMEX and now CIO of crypto investment fund Maelstrom, recently shared insights into the future trajectory of the cryptocurrency market.

In a new essay, he discusses recent interest rate cuts by both the Bank of Canada (BOC) and the European Central Bank (ECB), interpreting them as signs of possible global monetary easing, which should make the cryptocurrency market rise again.

For this magic trick to work, the G7 central banks (the Fed, the European Central Bank “ECB”, the Bank of Canada “BOC” and the Bank of England “BOE”) with “high” policy interest rates must cut them.

Hayes explains that central bank actions could be the prelude to a more favorable environment for risky assets. He suggests that the US Federal Reserve (Fed) could follow suit, which he says could catalyze a significant rally in cryptocurrencies.

“The June central bank fireworks, kicked off this week by BOC and ECB rate cuts, will catapult crypto out of the summer doldrums in the northern hemisphere. This was not my expected base case. I thought the fireworks would start in August, right when the Fed will hold its symposium in Jackson Hole. This is typically the place where abrupt policy changes are announced in the fall,” says Hayes.

Furthermore, Hayes is convinced that this is the time to invest in Bitcoin and altcoins. He comments, “The macro picture has changed from my baseline. Therefore, my strategy will also change. To the projects in the Maelstrom portfolio, who asked for my opinion on launching their tokens now or later. I say, let’s go!”

Hayes also mentions his personal investment, pointing to opportunities in the altcoin market. “For my excess liquid crypto money in synthetic dollars, aka USD (USDe) from Ethena, which is earning some APYs (annual percentage yields), it’s time to put it back into doom shitcoins. Of course, I will tell readers what they are after I buy them. But suffice it to say, the crypto bull is waking up and is about to rip the skin off profligate central bankers.”

Hayes’ renewed outlook for the cryptocurrency market is a reflection of his analysis of central bank trends, suggesting a potentially profitable period for crypto investors.

Disclaimer:

The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.