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Fed Rate Cut Could Crash Crypto Markets, but Era of Central Banks Is Over: Arthur Hayes

Author: Content Editor
In an interview, Arthur Hayes, co-founder of BitMEX and chief investment officer of Maelstrom, stated that risk assets, including cryptocurrencies, could experience a crash after the Federal Reserve's expected rate cut. Hayes believes that the rate cut will exacerbate inflation and strengthen the Japanese yen, leading to increased risk aversion. He also predicts that interest rates in the US will eventually fall to near-zero levels. Hayes suggests that this environment could reignite a bull run in yield-bearing parts of the crypto market, such as Ether, Ethena's USDe, and Pendle's BTC staking. He also agrees with the view that the era of central banks is over, with governments taking control of the money supply and governments becoming more influential in liquidity creation.

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