Former BitMEX CEO Backs Crypto Investments Amid Forecasted Fed Rate Cuts
Summary:
Former BitMEX CEO, Arthur Hayes, suggests that investing in cryptocurrencies is a smart move in today's financial environment. His sentiment lines up with predictions that the United States Federal Reserve could lower interest rates next year. Hayes stands by his prediction of a $1 million Bitcoin price in 2024. Currently, Bitcoin trades at around $42,500, following a major market fluctuation and a 7.5% drop earlier in the week, which marked Bitcoin's most significant single-day decline in 2023 yet.
Arthur Hayes, the ex-CEO of crypto exchange BitMEX, advises that investing in Bitcoin (BTC) and other digital currencies is a wise decision in the present financial atmosphere. He posted on X (formerly known as Twitter) on December 14, asserting that shorting cryptocurrencies is irrational. With regards to the prediction of Bitcoin hitting $1 million by 2024, Hayes still holds a staunch belief in it.
Hayes believes that betting on cryptocurrencies, with a particular bias on the long side, would be a good move, especially considering predictions that the United States Federal Reserve might lower interest rates come next year. On December 13, the latest Federal Open Market Committee (FOMC) resolved to maintain the current freeze on interest rate hikes. These expectations, however, were followed by a speech and press conference by Chair Jerome Powell, that hinted at possible interest rate reductions.
Addressing the status of the policy rate, Powell said, "Though it seems that our policy rate is at or near its peak for this tightening phase, the economy's outlook remains unpredictable due to the impact of the pandemic, and we are not certain whether our 2% inflation target will be sustained."
Following Powell's words, the path forward for the next FOMC meeting scheduled for January was left hanging in the balance. According to CME Group's FedWatch Tool, as of now, there is an 18.6% probability of an interest rate cut happening in early 2024.
The mainstream media shone a spotlight on the increasing expectations of a de-escalation in the US's monetary strategy following a lengthy period of enhanced rates. Hayes didn't mince his words highlighting the implications for cryptocurrencies, which are highly sensitive to liquidity fluctuations.
Hayes, known for his bullish stance on cryptocurrencies, emphasized that failing to invest is inexcusable, belarking fiat currency as valueless trash. He continues to foresee an eventual $1 million Bitcoin price tag as weaker national currencies experience depreciation.
As of writing, Bitcoin was trading at approximately $42,500. This comes after a drastic fluctuation concurrent with the opening of Wall Street. The losses negated gains accumulated overnight following a 7.5% dip earlier in the week, marking Bitcoin's largest single-day decline in 2023.
The volatile behavior was in response to a security breach affecting decentralized apps (DApps) that use the Ledger hardware wallet's connector function.
Reacting to the situation, trader and crypto analyst Scott Melker commented, "Someone had a field day liquidating $BTC longs before the price eventually normalizes."
CoinGlass, a statistics platform, reported modest Bitcoin long liquidations totaling just over $20 million on December 14. This is in striking contrast to December 11, which saw a figure of $126 million.
This news piece doesn't constitute or offer investment advice. All trading and investment endeavours carry risk, hence readers should conduct individual research before making financial decisions.
Published At
12/14/2023 6:34:52 PM
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