It is necessary to open long for bitcoin and later for shitcoins. A similar recommendation was made by the ex-CEO of BitMEX, Arthur Hayes, referring to the change in the macroeconomic background.
The expert drew attention to the results of the meeting of finance ministers and heads of the Central Bank of the G7. One of the topics discussed was the weakness of the Japanese yen against other reserve currencies.
They decided to fight this by reducing the difference in yields between government bonds of Japan and its allies. The latter will become possible with the easing of the monetary policy of the G7 countries, since the Japanese central bank has been keeping it at a near-zero level since 2009. The regulator cannot afford a sharp tightening, since it owns over 50% of the government's debt obligations.
Data: Substack.This week, the ECB and the Bank of Canada lowered the key parameter by 25 bps. Hayes stressed that this happened when inflation exceeded the target value of 2%.
"The problem is the weak yen. I believe that the "bad girl" [US Treasury Secretary Janet] Yellen stopped the performance of the Kabuki Theater with an increase in the rate. The time has come to preserve the global financial system under the leadership of Pax Americana," the expert concluded.
The expert urged to follow the final statement of the G7 leaders. In his opinion, it may contain a decision on coordinated actions in the foreign exchange market or the bond market in order to strengthen the yen. His absence will mean "tacit agreement" with the need for central banks other than the Central Bank of Japan to reduce key rates.
The ex-CEO of BitMEX considers the basic scenario of no easing by the Fed, given Joe Biden's set of points in the declared fight against inflation ahead of the elections in November. At the same time, Hayes did not rule out that the Bank of England will cut the rate earlier than the market currently expects.
The expert admitted that the easing of the policy by the Bank of Canada and the ECB forced him to reconsider his expectations regarding the return of cryptocurrencies from the "summer calm to the path to the Northern Hemisphere." The trend is obvious, monetary regulators have launched an easing cycle, he added.
Data: Substack."We know how to play this game. This is the same fucking game we've been playing since 2009, when our Lord and Savior Satoshi [Nakamoto] gave us a weapon to defeat the TradFi devil," Hayes wrote.
The specialist announced plans to withdraw liquidity from the USDe to shitcoins. He promised to reveal his positions in the future.
"Cryptocurrencies are waking up and are about to start tearing the skins of profligate central bankers," he concluded.
Earlier, Hayes predicted bitcoin's growth to $70,000 by the end of the summer.
Recall that Standard Chartered predicted an increase in the value of digital gold to $ 100,000 before the US elections.