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Arthur Hayes predicts there will soon be a major coin price increase after the Central Bank’s interest rate cuts

Arthur Hayes, co-founder and former CEO of derivatives exchange BitMEX, shared an optimistic outlook on cryptocurrencies, especially Bitcoin, following recent interest rate cuts by central banks. Hayes believes that these monetary policy changes could pull the cryptocurrency out of its current stagnation and push it to new highs.

In an article above blog personally on June 6, Hayes highlighted interest rate cuts by the Bank of Canada (BOC) and the European Central Bank (ECB) as key events that could significantly affect the crypto market. “June central bank fireworks starting this week with interest rate cuts by the BOC and ECB will lift crypto out of the doldrums of the northern hemisphere summer,” he asserted. Hayes encourages investors to “invest for the long term in Bitcoin and then shitcoins (referring to small coins that grow hundreds of times),” indicating a change in his investment strategy based on The macroeconomic context is changing.

Macroeconomic conditions are changing

Hayes’ optimism stems from the broader macroeconomic context. He noted that central banks in developed economies have begun to ease monetary policy. This trend includes recent interest rate cuts by the ECB and the Danish central bank, along with previous moves by the Bank of Canada and the Swiss National Bank. The potential for the US Fed to join this trend of cutting interest rates further fuels optimism towards crypto assets.

“The dollar-yen exchange rate is the most important macroeconomic indicator,” Hayes writes in his latest essay. He proposed that a stronger yen could be achieved through a strategy of unlimited exchange of newly printed dollars with the Bank of Japan (BOJ). This would allow the BOJ to strengthen the yen by buying it in global foreign exchange markets.

Central banks and inflation targets

Hayes criticized the uniform 2% inflation target adopted by G7 central banks, saying it did not take into account differences in culture, growth, debt and demographics. Although the inflation rate is exceeding this target, the BOC and ECB have cut interest rates, a move that Hayes said is unusual in the current economic context.

“The problem is a weak yen,” Hayes explained, emphasizing that a stronger yen is needed to counter competitive depreciation from other major economies such as China. He believes that recent interest rate cuts by central banks are part of a concerted effort to address this problem and maintain the stability of the global financial system.

Impact on Crypto

Hayes sees the actions of these central banks as a catalyst for the crypto market. He predicts that looser monetary policies will spur significant price increases in cryptocurrencies. “Invest for the long term in Bitcoin and then shitcoins,” advises Hayes, expressing strong belief in the potential for big profits in the crypto market.

He also mentioned the upcoming G7 meeting as an important event to watch, predicting announcements that could further influence market dynamics. Hayes remained flexible in his prediction of Fed action, noting the unusual political backdrop ahead of November’s U.S. presidential election.

Conclude

Arthur Hayes’ latest insights highlight the alignment between global monetary policies and crypto markets. With central banks starting to cut interest rates despite high inflation, Hayes sees a renewed bull run for cryptocurrencies in the near future. His change of strategy reflects broader predictions of favorable conditions for risk assets such as Bitcoin and other digital currencies.

Previously, Arthur Hayes predicted the Fed and BOJ would be the main driving force behind Bitcoin’s price increase to $1 million, as both central banks hit the “easy button” to rescue the nation’s weakening currency. This Asian country.

You can see coin prices here.

Thach Sanh

Bitcoin Magazine

Mark Tyson
Mark Tyson
Freelance News Writer. Always interested in the way in which technology can change people's lives, and that is why I also advise individuals and companies when it comes to adopting all the advances in Apple devices and services.
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