Arthur Hayes, the co-founder of BitMEX, predicts that a change in policy by central banks will soon propel crypto assets into a new era of bullish growth.
In a recent essay, Hayes, who now serves as the Chief Investment Officer of crypto investment fund Maelstrom, highlights that both the Bank of Canada (BOC) and the European Central Bank (ECB) have opted to reduce interest rates. He believes that these actions by Europe and Canada indicate a potential global shift towards more accommodative monetary policies, which could lead to a surge in risk assets once the Federal Reserve in the US follows suit.
“The recent central banking actions initiated by the BOC and ECB to cut rates will shake crypto out of its summer slump in the northern hemisphere. This wasn’t what I had initially anticipated. I had expected these actions to take place in August, around the time when the Fed holds its Jackson Hole symposium. Typically, this event is where sudden policy shifts are announced as we head into autumn. The pattern is evident. Central banks are gradually beginning to ease policy.”
According to Hayes, the evolution in monetary policy signals that it’s time to “long Bitcoin and subsequently invest in other cryptocurrencies.”
As the crypto veteran puts it, “The macroeconomic landscape has shifted from my previous expectations. Consequently, my investment strategy will also adapt. For the projects in the Maelstrom portfolio seeking my advice on whether to launch their tokens now or later, my response is clear: Let’s go for it! As for my surplus liquidity in crypto synthetic-dollar Ethena’s USD (USDe), which is currently generating attractive annual percentage yields, it’s time to reinvest in promising cryptocurrencies. I will disclose the specifics of these investments after I have made them. However, it’s safe to say that the crypto bull market is stirring once again and is poised to challenge the actions of central bankers.”
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