- A former CEO of Bitmex discusses the future of cryptocurrency investors in light of the current market conditions.
- In Hayes’ latest digest, titled “Circo Loco” (Crazy Circus), he examines the state of the markets taking into account the Federal Reserve’s tapering and the recent default of Evergrande.
- A significant decline in cryptocurrency prices is expected as a result of the China situation and the Federal Reserve’s accelerated tapering process.
Arthur Hayes, former CEO of Bitmex and cryptocurrency investor, weighed in on the way forward for cryptocurrency investors in light of the current market conditions. Hayes expounds on the status of the markets in his latest digest, titled “Circo Loco” (Crazy Circus), taking into account the Federal Reserve tapering and recent default of Evergrande. As a result of the China situation, as well as the Federal Reserve’s accelerated tapering process, cryptocurrency prices are likely to be impacted in a significant way.
According to Hayes “The Fed will continue tightening monetary conditions up until the point where stonks decline ..… or some part of the US Treasury market stops functioning normally.”
Hayes emphasizes the possibility that a fall in stock prices may impact the tapering process and prompt the Federal Reserve to continue with its QE (quantitative easing) and printing policies. Hayes explains how cryptocurrency investors can take advantage of the current market conditions based on his analysis.
According to him, it will be difficult to see bitcoin at $69K or ethereum at $5K during this period, as he predicts a sideways market with rising and falling prices all the time. The latest Huobi report, titled “Taper Landed,” predicts that limitations in market liquidity will negatively affect markets’ performance.
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Hayes advises new money to sit on the sidelines and wait for a better opportunity to enter the crypto market, which might occur following a Fed rate hike in March 2022 or June 2022.
The advice to those looking to enter the market – or those that already have a market position – is to focus on play-to-earn tokens, metaverse tokens, or NFT tokens, as their performance is not directly linked to the economy and depends on other factors, such as their introduction into new markets that support their growth.
About Bitmex
Bitmex is a trading platform that offers investors access to the global financial markets using only Bitcoin. BitMEX is built by finance professionals with over 40 years of combined experience and offers comprehensive API and supporting tools. BitMEX is owned by HDR Global Trading Limited.
