- Arthur Hayes, co-founder and former CEO of BitMEX, said the crypto bull market is “reawakening” following interest rate cuts by the Bank of Canada and the European Central Bank.
- Hayes believes more central banks will start easing cycles, providing a catalyst for Bitcoin and altcoin rallies.
- He advised crypto projects to launch their tokens now, saying “Let’s F**king Go!”
Recent interest rate cuts by the Bank of Canada and European Central Bank have sparked speculation that the crypto bull market could be returning. Arthur Hayes, co-founder of crypto exchange BitMEX, believes the trend of monetary easing has begun.
Hayes’ Analysis of Recent Rate Cuts
On June 6th, Hayes outlined his perspective on the BOC and ECB rate cuts in a blog post. Key points:
- On June 1st, the BOC cut rates 0.25% to 4.75%, the first G7 central bank to ease policy this year.
- The next day, the ECB matched with a 0.25% cut to 4.25%.
- Hayes says these surprise rate cuts in close succession show central banks are starting easing cycles to stimulate growth.
- This monetary stimulus could “catapult crypto out of the northern hemispheric summer doldrums,” reviving the bull market.
Upcoming Central Bank Meetings
Hayes believes more rate cuts could be on the horizon. He discusses some key central bank meetings to watch:
- The Fed’s June 13-14 FOMC meeting. Hayes thinks the Fed will hold rates steady given inflation concerns.
- The Bank of England’s meeting after the June 11-13 G7 Summit. Hayes suggests the BOE could deliver another surprise rate cut.
- The Fed’s annual Jackson Hole summit in August, where Hayes expects a significant policy shift to be announced.
Hayes’ Outlook for Crypto Markets
Hayes concludes by arguing the “trend is clear” of central banks easing policy at the margins. He believes this is bullish for crypto:
- “Go long bitcoin and subsequently s**tcoins.”
- For crypto projects planning token launches, Hayes says “Let’s F***ing Go!”
- Hayes thinks bitcoin could rally back toward $70,000 if central banks keep cutting rates.
Conclusion
Recent rate cuts by the BOC and ECB have fueled speculation of a renewed crypto bull market. Arthur Hayes believes more monetary stimulus is on the way, which could propel crypto assets higher. Key central bank meetings in June and August may provide catalysts for the next leg up.
