Arthur Hayes at TOKEN2049: Ethereum Set to Outperform as Federal Reserve Rate Cuts Loom

On September 18, COINOTAG news covered the TOKEN2049 event where BitMEX co-founder Arthur Hayes discussed macroeconomic trends in his keynote, “Thoughts on Macroeconomic Current Events”. Hayes emphasized that the Federal Reserve’s decision to cut interest rates amid increased government spending is a critical mistake. With inflation surpassing their targets and real GDP growth sustained above 2% for approximately 8 to 9 quarters, the financial situation is notably complex. Contrary to popular belief that rate cuts will boost markets, Hayes argues that the market will likely collapse soon after the adjustment, narrowing the interest rate gap between the US dollar and the yen.

Hayes highlighted the potential beneficiaries and adversely affected sectors in a lowered Treasury bond rate scenario alongside generated interest income from holding secure assets. Among the winners, he listed ENA, ETH, ETHFI, and PENDLE as valuable assets in his portfolio, while he does not hold ONDO. Furthermore, he noted Ethereum’s potential underperforming perception. However, in a declining Treasury yield environment, Ethereum could prove profitable, with its gains potentially surpassing those of the US dollar and Treasury bonds. Hayes foresees a rate cut triggering a market crash, subsequently sparking a renewed bull run.