Former CEO of the BitMEX exchange Arthur Hayes believes that Bitcoin and the cryptocurrency market can grow again – there are certain prerequisites for this.
According to Arthur Hayes, if the US Federal Reserve starts printing money again, the cryptocurrency market and defensive assets will begin to grow. This decision by the Fed is supported by the “worrying picture” on the bond market – rates on long-term bonds are growing faster than on short-term ones. This pattern often signals a bearish signal for the stock market and risky assets.
“The faster this difference in rates grows, the more people go bankrupt, the faster everyone will understand that the United States has no choice but to print money to save the government bond markets. And the faster we will return to a bull market in cryptocurrencies,” Hayes wrote on the X platform (Twitter).
The former CEO of BitMEX believes that the growing difference between 2-year and 30-year bond rates, as well as the hawkish stance of the Fed, are leading to an inflection point in the US economy.
“Because of the leverage and non-linear risks inherent in banks’ portfolios, they will sell bonds. And the more sales, the worse for bond prices,” Hayes recalled.
Previously, Arthur Hayes said that if American regulators approve the launch of spot Bitcoin ETFs, this will reduce the decentralization of the first cryptocurrency.
