Bitmex Co-Founder Arthur Hayes Recommends “Wait and See” Approach for Cryptocurrency Investors

Bitmex Co-Founder Arthur Hayes Recommends "Wait and See" Approach for Cryptocurrency Investors

Bitmex co-founder and cryptocurrency investor Arthur Hayes has addressed the current state of the market with the effect the U.S. Federal Reserve’s upcoming tapering process may have. Hayes also links this with the Evergrande situation in China and advises cryptocurrency newcomers to hold on until new signals emerge next year. Arthur Hayes Analyzes the Current Market Situation

Former Bitmex CEO and cryptocurrency investor Arthur Hayes issued his opinion on what cryptocurrency investors should do in the context of the current market. In his latest digest, titled “Circo Loco” (Crazy Circus), Hayes expounds on the current market situation in view of the larger economic framework, taking the Federal Reserve tapering and the recent Evergrande default event into account.

To him, the situation in China, combined with the accelerated tapering process that the Federal Reserve is already conducting, will affect cryptocurrency prices in a substantial way. Hayes states: 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 stresses that a bear market in stocks might affect the tapering process and prompt the Federal Reserve to continue with its QE (quantitative easing) and printing policy. What Hayes Thinks Investors Should Do

Based on this analysis, Hayes issues recommendations for cryptocurrency investors to get the most out of their capital during these times. In his vision, it will be very difficult to see bitcoin at $69K or ethereum at $5K during this period, as he predicts a sideways market with constant rises and falls.

This echoes predictions from the latest Huobi report, titled “Taper Landed,” which explains that the restriction in market liquidity will potentially affect markets’ performance in a negative way. The advice that Hayes gives is for new money to sit on the sidelines and wait for a better opportunity to enter the crypto market, which could appear after a March 2022 or June 2022 Fed rate hike.

For those eager to enter — or that already have market positions — the advice is to focus on play-to-earn, metaverse, or NFT-related tokens, as the overall performance of these is not directly related to the economy, and depends on other factors such as the introduction of these technologies into new markets that could support their growth. Tags in this story Arthur Hayes, BitMex, China, circo loco, crypto trader diges, crypto trader digest, cryptocurrency investment, digest, Evergrande, Federal Reserve, taper

What do you think about Arthur Hayes’ description of the crypto market and his recommendations? Tell us in the comments section below. Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved. German Savings Banks Consider Offering Crypto Services to Customers NEWS | 2 hours ago Multicoin Capital Exec Says There "May Not Be a Crypto Bear Market at All," Claims "Bitcoin Will Get Flipped" NEWS | 13 hours ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleGerman Savings Banks Consider Offering Crypto Services to Customers Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItE-Commerce Giant Amazon Backs Wax Blockchain-Based Fractional Trading Card Market Dibbs: Report

According to reports, the e-commerce giant Amazon has recently invested in a fractional sports trading card marketplace called Dibbs. The platform, built on top of the Wax blockchain, allows users to purchase and sell fractions of collectible trading cards. Reports ... read more.Indian Prime Minister Modi Tells President Biden"s Summit: Cryptocurrency Should Be Used to Empower Democracy Inflation Plagues American Economy: US Consumer Prices See Fastest Rise in Close to 40 Years Indian Prime Minister Narendra Modi to Take Final Decision on Cryptocurrency Regulation Makersplace Plans to Drop World’s First 2pac NFT Collection Authorized by the Shakur Estate