Arthur Hayes, the co-founder of BitMEX, predicts that a change in policy from central banks is on the horizon and is set to propel crypto assets into a bullish phase.
In a recent essay, Hayes, who now serves as the Chief Investment Officer of the crypto investment fund Maelstrom, highlights that both the Bank of Canada (BOC) and the European Central Bank (ECB) have opted to reduce interest rates.
Hayes believes that these actions by Canada and Europe could signify a global trend towards looser monetary policies, which may result in a surge in risk assets once the US Federal Reserve follows suit.
“The recent rate cuts by the BOC and ECB have ignited central banking fireworks in June, setting the stage for a resurgence in the crypto market. This was not what I had anticipated. I had expected the fireworks to begin in August, around the time of the Fed’s Jackson Hole symposium, where policy shifts are traditionally announced leading into autumn.”
Hayes observes a clear trend emerging, with central banks gradually entering easing cycles at the margins.
According to Hayes, this new phase in monetary policy calls for a bullish stance on Bitcoin and other cryptocurrencies.
“The changing macro landscape has prompted a shift in my strategy. For projects in the Maelstrom portfolio seeking advice on launching their tokens, my response is clear: Let’s go for it! As for my surplus crypto assets in USDe, earning attractive yields, it’s time to reinvest in promising altcoins. The crypto bull market is awakening, poised to challenge the conventional wisdom of central bank policies.”
Hayes encourages readers to stay informed and prepared for the evolving crypto market dynamics by subscribing to updates and monitoring price movements.
Disclaimer: The views expressed by Arthur Hayes are not financial advice. Investors are advised to conduct their own research before engaging in high-risk investments in Bitcoin, cryptocurrencies, or digital assets. All trading activities are carried out at the individual’s own risk. The Daily Hodl does not endorse specific investments and is not a financial advisor. Please be aware that The Daily Hodl engages in affiliate marketing activities.