BitMEX co-founder Arthur Hayes made several bold predictions at the Token2049 crypto event in Singapore. He believes a new ETH bull run will start when the U.S. Federal Reserve’s rate cuts push U.S. Treasury rates below 4%.
Arthur Hayes Prediction
BitMEX co-founder Arthur Hayes made several bold predictions while speaking at the Token2049 event. He believes a new ETH bull run will start when the U.S. Federal Reserve’s rate cuts push U.S. Treasury rates below 4%. Hayes compared ETH to an internet bond that offers staking yields of around 4%.
Impact on Tokens
Hayes pointed out that as the Federal Reserve cuts rates, tokens outperforming U.S. Treasuries in yields would see benefits. He highlighted tokens like ENA, ETH, ETHFI, and PENDLE as examples. However, he thinks real-world asset (RWA) tokens like ONDO would lose out in this scenario.
Risk Asset Warning
Hayes also warned of a potential sharp drop in risk assets if the Federal Reserve cuts interest rates. He criticized the rate-cut decision, pointing to ongoing inflation in the U.S. Hayes suggested that a narrowing U.S.-Japan interest rate spread could result in a stronger yen, impacting the U.S. economy.
Arthur Hayes' predictions highlight the importance of closely monitoring Federal Reserve actions and their potential impact on cryptocurrency markets, particularly ETH.
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