Buy Now, Crypto Bull Market Returns, Says Arthur Hayes


In
a
new

essay
titled
“Group
of
Fools,”
Arthur
Hayes,
the
outspoken
co-founder
of
crypto
exchange
BitMEX,
casts
a
critical
eye
over
recent
macroeconomic
developments
and
their
implications
for
the
crypto
market.
Hayes,
known
for
his
direct
and
often
provocative
commentary,
employs
a
blend
of
technical
analysis,
central
banking
critique,
and
currency
market
insights
to
build
a
case
for
what
he
believes
is
the
return
of
a
Bitcoin
and
crypto
bull
market.

A
“Group
Of
Fools”

He
begins
by
emphasizing
the
significance
of
the
dollar-yen
exchange
rate
as
a
macroeconomic
barometer.
According
to
Hayes,
this
metric
crucially
influences
global
financial
stability
and
policy
decisions.
“The
dollar-yen
exchange
rate
is
the

How To Get Free Crypto  

most
important
macroeconomic
indicator,”
he
asserts.

Hayes
revisits
his
earlier
proposal
for
the
US
Federal
Reserve
(Fed)
to
engage
in
extensive
dollar-for-yen
swaps
with
the
Bank
of
Japan
(BOJ),
a
move
he
argues
would
empower
the
Japanese
Ministry
of
Finance
to
bolster
the
yen
through
targeted
interventions
in
the
forex
markets.
Despite
the
theoretical
benefits
of
this
strategy,
Hayes
notes
with
a
mix
of
irony
and
frustration
that
the
G7
nations,
which
he
refers
to
as
the
“Group
of
Fools,”
have
opted
for
a
different
route.


Related
Reading

The
narrative
then
shifts
to
a
critical
examination
of
the
G7’s
central
banking
strategies.
Hayes
points
out
the
stark
discrepancies
in
interest
rates
among
the
major
economies,
with
Japan
maintaining
a
near-zero
rate
while
other
nations
hover
around
4-5%.
He
critiques
the
conventional
wisdom
that
supports
rate
cuts
as
a
tool
to
manage
inflation,
which
universally
targets
a
2%
rate
among
G7
countries,
despite
their
diverse
economic
conditions.

“The
G7
central
banks—with
the
exception
of
the
BOJ—have
all
raised
rates
aggressively
in
response
to
inflation
spikes,”
Hayes
writes.
However,
he
highlights
yesterday’s
unexpected
rate
cuts
by
the
Bank
of
Canada
and
the
European
Central
Bank
despite
prevailing
inflation
trends,
suggesting
a
deeper,
unstated
economic
strategy
aimed
at
bolstering
the
yen
against
a
backdrop
of
geopolitical
and
economic
tensions
with
China.

He
describes
this
move
as
a
cessation
of
what
he
terms
“rate
hike
Kabuki
theatre,”
a
maneuver
he
believes
is
designed
to
maintain
the
dominance
of
the
Pax
Americana-led
global
financial
system.

Coinbase Banner  

Why
The
Bitcoin
And
Crypto
Bull
Run
Returns

It
is
in
this
context
that
Hayes
pivots
to
the
implications
for
the
crypto
market.
Looking
ahead,
Hayes
turns
his
gaze
to
the
crypto
markets,
suggesting
that
these
recent
shifts
signal
a
fortuitous
environment
for
investment
in
digital
assets.
Hayes
speculates
that
the
coordinated
actions
of
central
banks
to
adjust
interest
rates
downward,
despite
high
inflation,
are
setting
the
stage
for
increased
liquidity
in
global
markets,
which

traditionally
benefits
riskier
assets
like
Bitcoin
and
subsequently
altcoins.


Related
Reading

“The
June
central
banking
fireworks
kicked
off
this
week
by
the
BOC
and
ECB
rate
cuts
will
catapult
crypto
out
of
the
northern
hemispheric
summer
doldrums.
This
was
not
my
expected
base
case.
I
thought
the
fireworks
would
start
in
August,
right
around
when
the
Fed
hosts
its

Jackson
Hole
symposium,”
Hayes
noted.

He
argues
that
these
monetary
policy
shifts
are
likely
to
ignite
a
bull
market
in
Bitcoin
and
crypto,
particularly
as
central
banks
appear
to
be
entering
a
cycle
of
rate
easing.
“We
know
how
to
play
this
game.
It’s
the
same
game
we
have
been
playing
since
2009
when
our
Lord
and
Saviour
Satoshi
gave
us
the
weapon
to
defeat
the
TradFi
devil.
Go
long
Bitcoin
and
subsequently
shitcoins.”
Hayes
declares,
referencing
the
pseudonymous
creator
of
Bitcoin.

As
the
G7
meeting
from
June
13-15
looms,
Hayes
anticipates
further
developments
that
could
influence
global
financial
markets.
He
expects
the
communiqué
from
this
gathering
will
likely
address
currency
and
bond
market
manipulations
explicitly,
or
at
least
signal
continued
accommodative
policies.
Additionally,
Hayes
forecasts
that
despite
conventional
caution
against
policy
shifts
near
major
political
events
like
the

FreeBitcoin Banner  

US
presidential
election,
unusual
circumstances
might
prompt
unexpected
moves.

Hayes
concludes
his
essay
by
reinforcing
his
bullish
stance
on
Bitcoin
and
crypto,
driven
by
his
analysis
of
G7
monetary
policies
and
their
impact
on
global
exchange
rates
and
financial
stability.
His
call
to
action
for
the
crypto
community
is
to
capitalize
on
these
developments,
positioning
themselves
for
what
he
predicts
will
be
a
lucrative
phase
in
the
markets.

“For
my
excess
liquid
crypto
synthetic-dollar
cash,
[…]
it
is
time
to
deploy
it
again
on
conviction
shitcoins.
[…]
But
suffice
it
to
say,
the
crypto
bull
is
reawakening
and
is
about
to
gore
the
hides
of
profligate
central
bankers,”
Hayes
concludes.

At
press
time,
BTC
traded
at
$71,200.

Bitcoin
holds
above
$71,000,
1-day
chart
|
Source:

BTCUSD
on
TradingView.com

Featured
image
created
with
DALL·E,
chart
from
TradingView.com

Go to Source
Author: Jake Simmons


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