Arthur Hayes, co-founder of BitMEX, predicts that a change in policy by central banks will propel crypto assets into a new bullish phase.
In a recent essay, Hayes, who now serves as the Chief Investment Officer of Maelstrom, a crypto investment fund, highlights the decisions made by the Bank of Canada (BOC) and the European Central Bank (ECB) to reduce interest rates.
Hayes suggests that these actions by Europe and Canada indicate a potential global shift towards looser monetary policies, which could lead to a surge in risk assets once the Federal Reserve in the US follows suit.
“The recent rate cuts by the BOC and ECB have set off central banking fireworks that will shake crypto out of its summer slumber in the northern hemisphere. This was not what I had anticipated. I expected the fireworks to start in August, around the time of the Fed’s Jackson Hole symposium, where sudden policy changes are typically announced for the autumn.
The pattern is evident. Central banks are beginning to enter easing cycles.”
Hayes believes that the evolving monetary policy landscape calls for a bullish approach towards Bitcoin and other cryptocurrencies.
“The macro environment has shifted from my initial expectations. Therefore, my investment strategy must adapt accordingly. For the projects in the Maelstrom portfolio seeking my advice on launching their tokens, my response is clear – Let’s make it happen!
As for my excess liquid crypto assets in USDe, which are earning attractive APYs, it’s time to reinvest in promising altcoins. I will disclose my picks once I have secured them. The crypto bull market is waking up and is poised to challenge the actions of reckless central bankers.”
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