Former Bitmex CEO Arthur Hayes suggests a “wait and see” approach to cryptocurrencies
Bitmex co-founder and investor Arthur Hayes analyzed the current market situation and the impact of the upcoming cuts by the US Federal Reserve (Fed). Hayes also mentioned Evergrande’s situation in China and advised newcomers to HODL until new signals emerge next year.
Arthur Hayes – Former CEO of Bitmex
Arthur Hayes analyzes the current market situation
Former Bitmex CEO Arthur Hayes has show Advising investors in the current market environment. In his latest article, entitled “Circo Loco,” Hayes explains the current market situation within the economy as a whole, taking into account the tightening of monetary policy by the Fed and the recent Evergrande default.
For him, the situation in China, combined with the rapid contraction the Fed is executing, will have a significant impact on crypto prices.
“The Fed will continue to tighten monetary policy until stocks fall … or some parts of the US Treasury bond market close.”
Hayes stressed that the falling stock market could affect the cutting process, which could lead the Fed to continue QE (quantitative easing) and monetary pressure policies.
OLDWhat investors should do What?
Based on this analysis, Hayes gives crypto investors a recommendation to make the most of their capital during this time. According to him, there is no chance Bitcoin will hit $ 69,000 or ETH $ 5,000 in the short term as it predicts a sideways market with continuous ups and downs.
This mirrors the predictions made in Huobi’s latest report, which states that limited liquidity will adversely affect market performance. Hayes’ advice is that the new flow of money should stay on the sidelines, or in other words, investors should wait for a better opportunity to enter the cryptocurrency market. That opportunity could arise after the Fed hikes rates in March 2022 or June 2022.
For those looking to get into the market or who already have a place in the market, they should focus on Play-to-Earn, Metaverse, or NFT tokens as the overall performance of these tokens is not directly related to the platform and other factors such as the introduction of these technologies into new markets can accelerate their development.
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