Amid changing macro-economics, former BitMEX CEO Arthur Hayes believes the smartest trade right now is to buy up Bitcoin and other crypto assets.
After a period of global monetary tightening, central banks worldwide are beginning to pivot to inject money into the economy. This important change in global macroeconomics points to a period of bullish returns for financial markets, an outcome that former BitMEX CEO Arthur Hayes weighed in on in a recent opinion piece.
The veteran investor is considered a cryptocurrency OG, having founded one of the first trading venues for users to access crypto derivatives in 2014. In its glory days, BitMEX dominated the global trading volume for crypto derivatives, although its growth has since stalled after a now-settled U.S. lawsuit against the company and its executives.
Looking into the immediate future, Arthur Hayes believes the conditions are now ripe for Bitcoin and the cryptocurrency industry to profit off loose monetary policy from central banks. Hayes pinpointed the ongoing injection of money into the U.S. economy under the leadership of Treasury Secretary Janet Yellen.
According to the former BitMEX CEO, the U.S. government’s pivot paves the way for other central banks worldwide to follow suit. Specifically, Hayes notes that the People’s Bank of China (PBoC), European Central Bank (ECB), and the Bank of Japan (BoJ) will inject liquidity into their banks and financial markets.
Such a decision would not adversely affect their respective currencies, as it would have if the United States maintained a stringent monetary policy. However, since the world’s reserve currency economy is taking on more debt and printing more money, rival economies can do so with less impact.
Bitcoin and Crypto Smartest Trades
With the amount of global credit expected to accelerate over the coming months, Arthus Hayes believes the best approach for investors is to go long on Bitcoin and other crypto assets.
In his latest essay, he wrote, “The smartest trade is going long crypto. [Nothing else] has outperformed the increase in central bank balance sheets like crypto.” Admittedly, Bitcoin has soared by over 250% compared to other major assets and indexes since the U.S. Federal Reserve began expanding its balance sheet in March 2020 in response to COVID-19.
Regarding which crypto assets stand to profit the most, Hayes cites Bitcoin (BTC) and Ether (ETH) as the major bets. He also mentions Solana (SOL), the surging layer-1 network to which Hayes has become a fan lately.
Meanwhile, the former BitMEX CEO noted that various decentralized apps (dApps) and associated tokens would rise significantly, perhaps up to 10,000x for some assets. However, he urged investors to remain vigilant, anticipate risks and make the most of what will come.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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