BitMEX founder Arthur Hayes discussed the macroeconomic situation and trends in the cryptocurrency market in an article released today.
Regarding the macroeconomy, Arthur Hayes pointed out that the Federal Reserve (Fed) announced a reduction in the scale of quantitative tightening (QT). By slowing down the pace of balance sheet reduction, an additional $35 billion will be released each month, which will help increase liquidity in the overall financial market, including the cryptocurrency market. In addition, although the benchmark interest rate is still at a relatively high level, the government is managing liquidity demand through various measures such as adjustments to the Treasury Department’s debt issuance strategy, while ensuring market stability.
Therefore, Arthur Hayes believes that the cryptocurrency market will hit bottom, decline, and slowly start to rise. He stated that the slow increase of billions of dollars in liquidity each month will suppress negative price movements starting from now. Although he does not believe that cryptocurrencies will immediately fully realize the inflationary nature of the recent US monetary policy announcement, he expects prices to hit bottom, decline, and slowly start to rise.
Arthur Hayes shared that personally, he chooses to buy Solana and Dogecoin in terms of short-term momentum trading positions. As for long-term altcoin positions, he would consider buying more PENDLE and other undervalued altcoins.
