Arthur Hayes, co-founder of BitMEX and now managing his family office Maelstrom, has heralded the revival of the crypto bull market. This resurgence, Hayes argues, is spurred by recent interest rate cuts by major central banks, signaling a shift in global economic policy.
The Bank of Canada’s decision on Wednesday to reduce interest rates by a quarter-point, followed by a similar move by the European Central Bank, has ignited significant market reactions. Hayes, in a June 6 Substack post, described these developments as “fireworks” that will propel crypto markets out of the seasonal lull.
While speculating on the possibility of the Bank of England following suit, Hayes primarily anticipates significant economic policy changes to unfold at the U.S. Federal Reserve’s Jackson Hole Symposium in August. This event often serves as a platform for unveiling substantial updates.
Ahead on the economic calendar are the Fed’s Federal Open Market Committee (FOMC) meeting and the G7 Leaders’ Summit in Italy. Hayes questions the likelihood of the Fed cutting rates close to the U.S. presidential election in November, considering it would be “political suicide” amidst inflation concerns.
Hayes also predicts no immediate shifts from the Bank of Japan but suggests that the Bank of England, meeting after the G7 Summit, could surprise with a rate cut. He highlights a clear trend of central banks easing monetary policies, advising the crypto community to adopt long positions on Bitcoin and other altcoins, colloquially referred to as “sh*tcoins.”