BitMEX founder Arthur Hayes discussed the current market situation in his latest blog post. Arthur believes that the Fed’s rate hike is unsustainable, and the crypto market will rebound after the expectation of shrinking the balance sheet disappears.
Before the mid-term elections, people will realize that raising interest rates will not solve the inflation caused by the global supply chain crisis, but will only destroy asset prices.
The article further proposes that the correlation between the crypto market and Nasdaq has been reduced in this round of interest rate hikes, and that the bottom of each bear market for Bitcoin and Ethereum is higher than the top of the previous bull market, and it is proposed that this round of declines will lead to a decline in the market. With Bitcoin bottoming at $25,000 to $27,000 and Ethereum at $1,700 to $1,800, “I still believe that Ethereum will reach $10,000 by the end of the year, but I’m not sure where the inflection point of the Fed’s decision-making shift is.”