The post BitMEX Co-Founder Arthur Hayes Predicts Crypto Boom after Rate Cuts by Canada and Europe’s Central Banks appeared on BitcoinEthereumNews.com.

Coinspeaker BitMEX Co-Founder Arthur Hayes Predicts Crypto Boom after Rate Cuts by Canada and Europe’s Central Banks BitMEX co-founder Arthur Hayes has recently expressed a positive outlook on the cryptocurrency market, predicting a significant rise following interest rate cuts by the Bank of Canada (BOC) and the European Central Bank (ECB).  In a blog post published on BitMEX’s website, Hayes shared his predictions, linking these monetary policy changes to the potential for a new surge in the crypto market. Central Banks Cut Rates despite High Inflation In his detailed analysis, Hayes pointed out that the BOC and ECB made the unusual move of cutting rates while inflation remained above target. Normally, rate cuts are used when inflation is low to encourage spending. However, Hayes believes these rate cuts are part of a plan by G7 central banks to reduce the interest rate gap with Japan, thus strengthening the yen indirectly. He noted the importance of the dollar-yen exchange rate, suggesting that by cutting rates, central banks aim to make their currencies less attractive than the yen. This could lead to a market-driven increase in the yen’s value. According to Hayes, this is necessary to counteract China’s competitive currency devaluation, which could otherwise harm the US dollar and global financial stability. However, China may be displeased with this policy as it competes directly with Japan in exports. China faces deflation due to its property market decline and needs inflation to support its debt-driven economy. Crypto Market Ready for Growth With central banks starting to ease monetary policy, Hayes thinks the conditions are ripe for a new crypto boom. He compares this to the period after the 2008 financial crisis when aggressive monetary policies led to a long bull run in various asset classes, including cryptocurrencies. Hayes recommended adopting a long position…

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Filed under: News - @ June 8, 2024 2:24 am