Crypto Bull Market “Reawakening” Amid Global Interest Rate Cuts

Arthur Hayes: Crypto Bull Market Is “Reawakening” Amid Global Interest Rate Cuts

Arthur Hayes, co-founder and former CEO of BitMEX who now runs family office Maelstrom, declared that the crypto bull market has “re-awakened.” This optimistic outlook follows recent interest rate cuts by the Bank of Canada and the European Central Bank, which signal a shift in global economic policy.

The Bank of Canada on Wednesday became the first major central bank to cut interest rates this year, cutting interest rates by a quarter point to 4.75%. The European Central Bank did the same thing yesterday, reducing interest rates by the same amount to 4.25%. These moves sparked significant market reactions, which Hayes described as “fireworks,” predicting they would “hurt cryptocurrencies out of their northern hemisphere summer doldrums,” according to a June 6 Substack post.

Hayes speculated about whether the Bank of England might follow this trend, but stated that this was not his main expectation. He predicts that the catalyst for further significant change will come in August at the Federal Reserve’s Jackson Hole Symposium, a major event where major economic policy updates are frequently announced.

Upcoming on the economic calendar are the Fed’s Federal Open Market Committee (FOMC) meeting on June 11-12 and the G7 Leaders Summit to be held in Apulia, Italy, on June 13-14. Hayes questioned whether the Fed would cut interest rates so close to the US presidential election in November, stating that it would be “political suicide” given ongoing inflation concerns. He believes the Fed is likely to keep interest rates steady at its next meeting.

Hayes also does not expect any change from the Bank of Japan anytime soon, but suggested that the Bank of England, which met shortly after the G7 Summit, could be the next institution to surprise with a rate cut, following the examples set by the Bank of Canada and the European Central Bank. . Bank. Hayes noted that central banks were beginning to ease monetary policies and saw this as a clear trend. His advice to the crypto community is to take long positions in Bitcoin and other altcoins, which he colloquially calls “sh*tcoins.”