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Arthur Hayes, co-founder of BitMEX, believes recent signals from the Federal Reserve suggest a potential liquidity injection that could benefit Bitcoin.
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Hayes points to rising bond yields and global economic stress, including US–China tariff tensions, as triggers for possible central bank intervention.
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The BitMEX co-founder believes this environment presents an ideal time to accumulate crypto assets in anticipation of a strong market rebound.
Arthur Hayes urges investors to seize the opportunity in crypto markets as Fed signals hint at liquidity support amidst rising economic tensions.
Hayes Sees Market Stress as Cue to Buy Bitcoin
Hayes previously pointed to rising bond yields, particularly the 10-year US Treasury rate climbing above 4.5%, as a potential trigger for government intervention. He argued that such pressure could force the Fed to inject fresh liquidity, creating favorable conditions for risk assets—especially Bitcoin. According to Hayes, this scenario could lead to a prolonged upward move in crypto and broader markets.
“We will be getting more policy response this weekend if this keeps up. We are about to enter UP ONLY mode for BTC,” Hayes stated.
The Fed’s stance appears to support this view. Susan Collins, President of the Boston Federal Reserve, recently told the Financial Times that while the markets are still functioning properly, the Fed stands ready to act if liquidity becomes strained. Collins emphasized that the central bank has tools in place to ensure market stability if disruptions emerge. However, she stressed that the rate cuts are not the Fed’s first line of defense, as other tools are available to stabilize financial markets when needed.
“The core interest rate tool we use for monetary policy is certainly not the only tool in the toolkit and probably not the best way to address challenges of liquidity or market functioning,” she said.
These developments come at a time when the global economy is already under stress. President Donald Trump’s new wave of tariffs has added fresh uncertainty to financial markets. Though the administration paused its new tariff schedule for 90 days, it sharply increased duties on Chinese goods to 145%. China has since responded with its own tariff hikes, lifting rates on American imports from 84% to as much as 125%.
These tit-for-tat measures have raised fears of an inflation spike in the US, along with possible job losses and weaker economic growth. Wall Street has already experienced a significant selloff, and US Treasury markets are showing signs of strain. Meanwhile, despite the short-term suspension of new trade penalties, underlying tensions remain high. For Hayes, however, the combination of macro stress and central bank intervention presents a clear signal: this may be the moment to accumulate assets before the tide turns.
A Global Perspective on Economic Recovery
As the international landscape shifts, investors are now considering the broader implications of central banks’ potential moves. Hayes notes that a wave of liquidity from the Fed could spark interest not just in Bitcoin, but across various cryptocurrencies, bringing in new participants who might have previously been hesitant. The presence of institutional investors could amplify this trend, as they seek to diversify their portfolios in uncertain times.
Conclusion
Arthur Hayes’s assertions call for a recalibration in investment strategies amidst economic fluctuations. His emphasis on gathering crypto assets as an opportunity reflects the evolving dynamics in financial markets. Should central banks intervene, especially in light of the stresses presented, it could indeed pave the way for significant upside potential in cryptocurrencies like Bitcoin.
