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

Bitmex co-founder and cryptocurrency investor Arthur Hayes addressed the current market situation with the impact of the US Federal Reserve's upcoming tapering process. Hayes also links this to the Evergrande situation in China and advises cryptocurrency newbies 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 discusses the current market situation in light of the larger economic context, highlighting the Federal Reserve tapering and the recent Evergrande Standard event taken into account.

For him, the situation in China, combined with the accelerated tapering process that the Federal Reserve is already carrying out, will have a significant impact on cryptocurrency prices. Hayes says:

The Fed will continue to tighten monetary conditions until the stinks go down... or part of the U.S. Treasury market stops functioning normally.

Hayes emphasizes that a bear market in stocks could disrupt the tapering process and prompt the Federal Reserve to continue its QE (quantitative easing) and printing policies.

What Hayes thinks investors should do

Based on this analysis, Hayes provides 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 $69,000 or Ethereum at $5,000 during this period, as he predicts a sideways market with constant rises and falls.

This echoes the predictions from the latest Huobi report titled “ Landed taper ", which explains that restricting market liquidity will potentially have a negative impact on market performance. The advice Hayes gives is that new money is sitting on the sidelines, waiting for a better opportunity to enter the crypto market, which could appear after a Fed rate hike in March 2022 or June 2022.

For those eager to get in - or already have market positions - you should focus on play-to-earn, metaverse or NFT-related tokens, as the overall performance of these tokens 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.

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

Sergio Goshenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere in December 2017. He has a computer engineering background, lives in Venezuela and is socially concerned about the cryptocurrency boom about crypto's success and how it helps the unbanked and underserved.

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