- Arthur Hayes' Forecast for Next Week
- Critique of Federal Reserve Policies
- Potential Next Steps and Consequences
Arthur Hayes, co-founder and former CEO of BitMEX, shared his outlook on Bitcoin's potential in the near future. After a series of negative weeks, he closes a short position on Bitcoin with a modest profit and comments on the market's direction.
Arthur Hayes' Forecast for Next Week
According to Arthur Hayes, ongoing market deterioration could lead to an increase in Bitcoin's value. He stated, "If stuff continues to puke next week, Bitcoin MIGHT rise, anticipating more liquidity." Recently, he closed a short position in Bitcoin with a 3% profit, which he said was enough to cover his food and bar tabs during Korea Blockchain Week (KBW).
Critique of Federal Reserve Policies
Arthur Hayes has been vocal about his dissatisfaction with the Federal Reserve's policies, asserting that they have not addressed the true cause of inflation—government spending. Hayes believes that the Fed’s so-called restrictive measures are ineffective and refers to them as a joke used by naive economists. He particularly points out the rise in 10-year Treasury yields following the Fed's 2023 pause, calling it a red flag. Hayes predicts that forthcoming rate cuts will bring these yields dangerously close to 5%, which could spell trouble for the stock market, small banks, and mortgage rates.
Potential Next Steps and Consequences
Hayes believes the political situation in the US will compel Treasury Secretary Janet Yellen to inject liquidity into the market to support the Democratic Party and its likely presidential nominee, Kamala Harris. Should Yellen forgo such measures, Hayes forecasts a worsening economic scenario, which could negatively impact Harris' election chances. He noted that if this scenario plays out, Bitcoin could begin to rise steadily while altcoins might drop. Hayes also mentioned that while short-term predictions may be inaccurate, he remains confident in Bitcoin's long-term growth.
In conclusion, Arthur Hayes emphasizes that the current cryptocurrency market situation could lead to significant changes soon. He maintains his Bitcoin positions and plans to increase his investments in altcoins with real user demand.
Comments