In a recent blog post, BitMEX co-founder Arthur Hayes expressed his belief that the recent policy changes by global central banks signal the start of a significant bull market for Bitcoin and high-potential altcoins.
Hayes pointed to the rate cuts made by the Bank of Canada (BOC) and the European Central Bank (ECB) as notable moments, marking the first time in several years that G7 countries have reduced their benchmark interest rates.
According to Hayes, these shifts in monetary policy will provide a boost to the crypto market. He emphasized the importance of investing heavily in Bitcoin and altcoins at this time.
Central to Hayes’ analysis is the handling of the Japanese yen by the G7 countries. He suggested that the US Federal Reserve (Fed) should exchange unlimited amounts of newly printed dollars with the Bank of Japan (BOJ) in order to strengthen the yen.
Hayes raised concerns about the G7’s strategy of narrowing the interest rate differential over time, which he believes will lead to buying yen and selling other currencies. He argued that this approach could have a significant impact on exchange rates.
Looking ahead, Hayes expressed uncertainty about the possibility of the Fed cutting rates so close to the upcoming US presidential election. However, he predicted that the Fed and BOJ would likely maintain their current policies, with a potential rate cut from the Bank of England (BOE) following the G7 summit.
Hayes concluded that the recent rate cuts mark the beginning of an easing cycle, which he believes will rejuvenate the crypto market. He revealed plans to shift his investments from stablecoins to “high-conviction shitcoins” and encouraged projects within his Maelstrom portfolio to proceed with token launches without delay.
Reflecting on historical trends, Hayes noted that both traditional equities and Bitcoin have seen significant growth during periods of low interest rates. He referenced Bitcoin’s surge from under $4,000 to $64,000 following the Fed’s rate cut to 0.25%.
Overall, Hayes views the current conditions as a catalyst for the crypto market and anticipates a positive trajectory for Bitcoin and altcoins in the near future.
