Arthur Hayes Has Zero Chill – He’s Expecting “The Biggest Asset Bubble Since the Great Depression”

TL;DR

Arthur Hayes believes the grueling yr of rate of interest hikes we have simply skilled ought to have put dangerous investments (like BTC) in the bathroom.

One available, crypto is proving to be fairly resilient to adjustments within the conventional monetary system.

Alternatively as soon as the Fed begins to decrease rates of interest and print cash once more (anticipated to occur within the subsequent 1-2 years), a superb chunk of that new cash will stream into AI and crypto, pushing costs up (hoooray!) and that stream of cash will then go on to “produce the 80-year largest asset bubble that we have had because the Nice Melancholy within the Thirties” (boooo!).

Full Story

Proper now, Bitcoin is in its ‘Harry Potter on the finish of ebook 7’ period.

It must be lifeless…but it surely ain’t.

At the very least, that is what we took from BitMEX founder Arthur Hayes’ newest statements. Arty reckons the grueling yr of rate of interest hikes we have simply skilled ought to have put dangerous investments (like BTC) in the bathroom.

The fundamental idea being:

Rates of interest go up → stuff will get dearer → all of us reduce our spending on ‘nice-to-haves’ (e.g. Bitcoin) and deal with the ‘need-to-haves’ (e.g. meals, shelter, a lock of Jimmy Buffet’s mustache hair for the shrine we’re constructing in tribute of the mayor of Margaritaville himself, and so forth.)

However so far as Bitcoin goes – funding is not drying up as anticipated.

And with that, Arthur has two theories. One thrilling. One terrifying.

The thrilling idea:

“The usual playbook is beginning to break down.

Whether or not the Fed raises or cuts [interest rates], we’re in a superb place as a cryptocurrency trade.”

I.e. crypto is proving to be fairly resilient to adjustments within the conventional monetary system.

The terrifying idea:

Proper now, Arty sees three mania’s taking maintain of the monetary world which may lead to an enormous monetary collapse. They’re: AI, crypto, and cash printing.

The idea being that when the Fed begins to decrease rates of interest and print cash once more (anticipated to occur within the subsequent 1-2 years), two issues will occur:

A very good chunk of that new cash will stream into AI and crypto, pushing costs up (hoooray!).

That stream of cash will then go on to “produce the 80-year largest asset bubble that we have had because the Nice Melancholy within the Thirties” (boooo!).

Let’s hope he is solely half proper.