Arthur Hayes, the controversial founder of BitMEX and a veteran in the cryptocurrency space, has expressed his belief that Bitcoin (BTC) can continue to rise in price, irrespective of whether the U.S. Federal Reserve decides to raise interest rates or not.
In a recent newsletter, Hayes shared his perspective that over time, it will become increasingly evident that holding bonds is unwise, and there will be a shift of “capital at the margin” towards tangible financial assets.
Hayes elaborated on this by stating, “Certain assets such as Bitcoin, big tech/AI (artificial intelligence) stocks, productive farmland, etc. will continue rising and confound the majority of financial analyst muppets. It won’t make sense to them that Bitcoin is holding firm because they look at manipulated markets controlled by Fed asset purchases, such as yields on TIPS (US Treasury Inflation-Protected Securities) – which are (seemingly) positive and rising.”
He further explained that riskier assets like Bitcoin remain attractive to investors because the U.S. government has continued its spending spree, which has driven down the yields on government bonds.
“It gives me comfort because, while I still believe the base case scenario is that the Fed is forced to cut rates close to zero and restart the [quantitative easing] money printer, even if I’m wrong, I’m confident that crypto can rise quite substantially regardless.”
Arthur Hayes has had a controversial career in the crypto industry. Last year, he and fellow BitMEX executive Benjamin Delo pled guilty to violating the Bank Secrecy Act by failing to establish anti-money laundering protocols at their exchange. Hayes was subsequently sentenced to six months of home detention, two years of probation, and a fine of $10 million.
Hayes’ insights into Bitcoin’s resilience and potential to thrive amid macroeconomic uncertainties highlight the ongoing debate within the cryptocurrency community about the role of digital assets as a hedge against traditional financial instruments and central bank policies.