The crypto bull market is experiencing a reawakening, as observed by Arthur Hayes, the former CEO of BitMEX and current leader of Maelstrom. This resurgence coincides with recent interest rate reductions announced by the Bank of Canada and the European Central Bank.

On Wednesday, the Bank of Canada slashed interest rates by a quarter point, bringing them down to 4.75%, marking the first significant cut by a major central bank in the current year. Following suit, the European Central Bank also decreased rates by 0.25% to 4.25%.

Watching the Federal Reserve

Hayes is eagerly awaiting potential economic policy pronouncements at the upcoming U.S. Federal Reserve’s Jackson Hole Symposium in August. Important dates on the economic calendar include the G7 Leaders’ Summit in Apulia, Italy, scheduled for June 13–14, and the Federal Open Market Committee meeting on June 11–12.

Discussions revolve around the Federal Reserve's possible actions in light of the proximity to the U.S. presidential election in November. Given past trends of the Fed maintaining status quo close to elections and concerns about inflation, Hayes believes that lowering rates at this juncture could have severe consequences. He predicts that the Fed is likely to keep rates steady in the next meeting.

Following the G7 Summit, Hayes anticipates limited activity from the Bank of Japan, but suggests a potential negative interest rate surprise from the Bank of England following recent moves by the Bank of Canada and the European Central Bank.

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