Arthur Hayes, one of the founders of BitMEX, recently advised investors to consider buying various assets in response to signals from the US Federal Reserve. In a communication on April 11, he recommended diversifying exposure to the cryptocurrency markets as central banks appear prepared to intervene to stabilize the economy. Hayes highlighted the increasing bond yields and the potential for government involvement, specifically if the 10-year US Treasury rate exceeds 4.5%. He suggested that this situation might prompt the Federal Reserve to provide more liquidity, which could benefit risk assets like Bitcoin and potentially lead to an extended upward trend in both cryptocurrency and broader markets. Hayes indicated that there could be a substantial policy response from the Fed and predicted a positive trajectory for Bitcoin. The Federal Reserve also seems ready to act if liquidity becomes strained, according to Susan Collins, President of the Boston Federal Reserve. She emphasized the availability of various tools to stabilize the financial markets, not solely relying on interest rate cuts for monetary policy. These developments occur against the backdrop of global economic stress triggered by President Donald Trump's tariffs, which have heightened concerns over inflation, job losses, and economic growth. Despite a temporary pause in new tariffs, tensions persist, along with fears of adverse effects on the US economy. This challenging environment, combined with potential central bank interventions, suggests to Hayes that the current situation may present an opportunity to accumulate assets before conditions change.
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