Bitmex co-founder and cryptocurrency investor Arthur Hayes has addressed the current state of the market with the effect the U.S. Federal Reserve’s upcoming tapering process may have. Hayes links the issue to China’s Evergrande crisis and encourages newcomers in cryptocurrency to keep waiting for new signs next year.
Arthur Hayes analyzes the current market situation
Arthur Hayes, a former CEO of Bitmex and cryptocurrency investor has offered his opinions on the best way for cryptocurrency investors to invest in today’s market. In his latest digest, titled “Circo Loco” (Crazy Circus), Hayes expounds on the current market situation in view of the larger economic framework, taking the Federal Reserve tapering and the recent Evergrande default event into account.
He believes that cryptocurrency prices will be affected by the current situation in China and the Federal Reserve’s accelerated tapering. Hayes says:
The Fed will continue tightening monetary conditions up until the point where stonks decline … or some part of the US Treasury market stops functioning normally.
Hayes cautions that a bearish market in stocks could impact the tapering process. This would prompt the Federal Reserve (QE) to keep its printing and quantitative easing policies.
Hayes’s Take on What Investors Should Do
Hayes offers recommendations to cryptocurrency investors based on his analysis. Hayes predicts that bitcoin will not reach $5K at $69K, and etherum at $5K at $5K in this time period. He also sees a market where there is no steady rise or fall.
This echoes predictions from the latest Huobi report, titled “Taper Landed,” which explains that the restriction in market liquidity will potentially affect markets’ performance in a negative way. Hayes suggests that investors wait until there is a better chance to get into the crypto market.
For those eager to enter — or that already have market positions — the advice is to focus on play-to-earn, metaverse, or NFT-related tokens, as the overall performance of these is not directly related to the economy, and depends on other factors such as the introduction of these technologies into new markets that could support their growth.
What do you think about Arthur Hayes’ description of the crypto market and his recommendations? Comment below.
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