Bitmex Co-Founder Arthur Hayes Recommends ‘Wait and See’ Approach for Cryptocurrency Investors – Bitcoin News

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Bitmex co-founder and cryptocurrency investor Arthur Hayes addressed the current state of the market with the effect the upcoming U.S. Federal Reserve downsizing process may have. Hayes also links this to 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 has given his thoughts on what cryptocurrency investors should do in today’s market environment. In his latest digest, titled “Circo Loco” (Crazy Circus), Hayes sets out the current market situation given the broader economic framework, taking into account the Federal Reserve’s cut and the recent Evergrande default event.

For him, the situation in China, combined with the accelerated reduction process that the Federal Reserve is already carrying out, will substantially affect the prices of cryptocurrencies. Hayes states:

The Fed will continue to tighten monetary conditions to the point where stonks drop… or part of the US Treasury market stops functioning normally.

Hayes points out that a bear market in equities could affect the reduction process and prompt the Federal Reserve to continue its policy of QE (quantitative easing) and printing.

What Hayes thinks investors should do

Based on this analysis, Hayes makes 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 timeframe as it predicts a sideways market with constant rises and falls.

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

For those who wish to enter – or who already have positions in the market – the advice is to focus on tokens related to the game to win, the metaverse or the NFT, as the overall performance of these is not directly linked 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 investing, digest, Evergrande, Federal Reserve, type

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

Sergio goschenko

Sergio is a Venezuela-based cryptocurrency journalist. He describes himself as late in the game, entering the cryptosphere when the price hike occurred in December 2017. Having a background in computer engineering, living in Venezuela and being impacted by the cryptocurrency boom on a social level , it offers a different point of view. on the success of crypto and how it is helping the unbanked and underserved.

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