Arthur Hayes, co-founder of BitMEX, is encouraging crypto projects to seize the moment and launch their tokens, citing current favorable market conditions despite ongoing volatility. In his recent essay, Volatility Supercycle, published Wednesday, Hayes emphasized the importance of acting quickly to capitalize on the environment.
“We are urging our projects that delayed launching due to poor market conditions to accelerate their timelines,” Hayes said, referencing his crypto investment fund, Maelstrom. The fund, which focuses on venture-stage equity and token investments, aims to support projects that had previously postponed launches.
In addition to this, Maelstrom launched a grant program in July to aid Bitcoin Core developers, further demonstrating its dedication to advancing the broader crypto ecosystem.
Hayes: “Dump Fiat and Buy Crypto”
Hayes also advised investors to shift their fiat holdings into crypto, forecasting significant growth in the sector due to current market trends. “If you’re fully invested in crypto, sit back and enjoy watching your portfolio’s fiat value rise,” he said. He also suggested those with excess fiat should move their funds into crypto, adding, “If you have extra filthy fiat, deploy it into crypto.”
Hayes attributed his outlook to the monetary policies of “global elites,” including central banks and politicians, who he claims are printing money to control market volatility, ultimately devaluing fiat currencies. He pointed to central banks as a key catalyst for crypto growth, highlighting the U.S. Federal Reserve’s recent interest rate cut of 0.5%, which he believes will continue until rates approach zero, creating a bullish scenario for crypto.
Global Monetary Easing Boosts Crypto
Across the Atlantic, the European Central Bank has already begun cutting rates, and Hayes expects further reductions as economic pressures mount. In China, recent stimulus measures include both rate cuts and lower reserve requirements for banks, further signaling global monetary easing.
“All this fiat liquidity has to flow somewhere,” Hayes remarked, noting that Bitcoin and other cryptocurrencies are likely to serve as a “release valve” for the excess money in circulation. He predicted that the fiat required to maintain market stability would inevitably move into the crypto market.
Q4 Could Spark a Bitcoin Rally
Hayes is particularly optimistic about the fourth quarter of 2024, traditionally a strong period for Bitcoin, especially in halving years. He cited Bitwise data showing that Bitcoin has historically gained an average of 29.5% in October and 37.9% in November during such cycles. With central banks cutting rates and Bitcoin entering its typically bullish phase, Hayes believes this is an ideal time for crypto projects to launch their tokens.
Hayes concluded by asserting that the current combination of rate cuts, stimulus packages, and Bitcoin’s strong fourth-quarter performance makes the remainder of 2024 the perfect window for crypto projects to take action before the year ends.
