Arthur Hayes , a former CEO of Bitmex and cryptocurrency investor, has published his opinion about what cryptocurrency investors should do given the current market. Hayes’ latest digest, entitled “Circo Loco” (Crazy Circus), examines the market situation from the perspective of the wider economic context, including the Federal Reserve tapering, and the recent Evergrande default events.
He believes that cryptocurrency prices will be affected by the current situation in China and the Federal Reserve’s accelerated tapering process. Hayes says:
The Fed will keep tightening monetary conditions until stonks fall or until some part of the US Treasury markets ceases to function normally.
Hayes stresses the possibility that a bear stock market could affect the tapering process. This would prompt the Federal Reserve’s QE (quantitative ease) and printing policies.
What Hayes Believes Investors Should Do
Hayes offers recommendations to cryptocurrency investors based on this analysis. Hayes predicts that bitcoin will not reach $5K at $69K, and ethereum will rise and fall in this time period.
This is in line with the predictions of the Huobi report’Taper landed’, which states that market liquidity restrictions could negatively impact markets’ performance. Hayes advises that new money wait to be able to enter the crypto market after the Fed raises its rates in March 2022 and June 2022.
If you are looking to get into the market, or have already established market positions, the advice is to concentrate on play-to earn, metaverse or NFT-related tokens. The overall performance of these tokens is not directly tied to the economy and is dependent on other factors, such as the introduction these technologies to new markets that might support their growth.