Arthur Hayes, speaking on Crypto Banter, framed Federal Reserve action as a central determinant for the crypto marketFed cut of 50 basis points and characterised current monetary settings as a matter of interest rate policy discretion by Powell, with fiscal and regulatory authorities able to engineer a broader liquidity response if needed.
Hayes cautioned that markets could echo the 2022 cycle if a market consensus for easing is met with a hawkish surprise, saying such an outcome could prompt rapid repricing. He also flagged that a forceful hawkish signal at Jackson Hole might lead to an ETH retest toward the $4,000 technical area, as part of short-term risk repricing.
On stablecoins, Hayes argued market discourse underestimates their policy role, asserting that stablecoins could be leveraged by Treasury Secretary Benson to counter de‑dollarization, restoring offshore dollar flows and extending banking services to the Global Southern economies within existing regulatory constraints.