Buy shitcoins because the crypto bull run is coming again, says Arthur Hayes

Arthur Hayes says the bull run will return sooner than he expected. The founder of Bitmex assumed the period after August, but interest rate cuts from our ECB, among others, mean that he sees a lot of money flowing into the crypto market.

Hayes: ‘It’s time to use my excess cash to buy shitcoins. But suffice it to say that the crypto bull is awakening again and is about to pierce the hides of profligate central bankers.”

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He wrote one new blog called ‘Group of Fools’, also his name for the G7. He starts by looking at the exchange rate of the dollar and the yen.

Look at dollar-yen exchange rate

According to Hayes, this exchange rate significantly influences global financial stability and policy decisions. “The dollar-yen exchange rate is the most important macroeconomic indicator,” he says.

Hayes reiterates his proposal for expanded dollar-for-yen swaps between the US Federal Reserve (Fed) and the Bank of Japan (BOJ). He believes this strategy would help Japan’s finance minister strengthen the yen through targeted interventions in the currency markets. Despite the benefits of this approach, Hayes notes with irony and frustration that the G7 countries, which he calls the “Group of Fools,” are choosing a different path.

Why different interest rates?

Hayes then criticizes the strategies of the G7 central banks. He points to the large differences in interest rates between major economies, with Japan having almost zero interest rates, while other countries are around 4-5%. Hayes criticizes the conventional wisdom that supports interest rate cuts as a tool against inflation, while the G7 countries all aim for a 2% inflation target regardless of their different economic circumstances.

“The G7 central banks—except the BOJ—have all aggressively raised rates in response to increases in inflation,” Hayes writes. Yet he emphasizes yesterday’s unexpected interest rate cuts by the Bank of Canada and the European Central Bank.

According to him, this points to a deeper, unspoken economic strategy to strengthen the yen, against a backdrop of geopolitical and economic tensions with China.

What does this have to do with crypto?

‘The interest rate cuts from the Bank of Canada (BOC) and the European Central Bank (ECB) this week will breathe new life into crypto. I did not expect this. I thought the actions would start in August, around the time the Fed hosts its Jackson Hole symposium,” Hayes says.

He thinks these interest rate cuts will likely cause a rise in the price of Bitcoin and other cryptocurrencies.

“We know how to play this game. It’s the same game we’ve been playing since 2009, when Satoshi, the creator of Bitcoin, gave us the tools to beat the traditional financial world. Buy Bitcoin and then other cryptocurrencies,” says Hayes.

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