Arthur Hayes Suggested To The Crypto Traders That It ” Pays To Wait” With Making New Investments In Crypto. As per his conclusions “As we enter 2022 and I.Q. 2022, How we can take out bitcoin at USD 69,000 or ether at USD 5,000″.
Arthur Hayes Conveyed Important Suggestions For Crypto Traders By His Recent Post:
The former CEO and C.O.- founder, Arthur Hayes, advised all the crypto traders that” the Monetary policy in the U.S. and China will most likely not get any easier in the near term. It, therefore, pays to wait with making new investments in cryptocurrency.
Also, in his blog post, he wrote in the conclusion part, “As we enter 2022 and I.Q. 2022, How we can take out bitcoin at USD 69,000 or ether at USD 5,000″.
He further said that the more likely condition in the upcoming few months is a “sideways, boring market with a small bout of downside volatility followed by a tepid recovery.”
Advice For Different Types Of Investors:
He further offered some investment suggestions that he prepared for three types of crypto investors on this topic.
- Investors are looking at whether they have to or not have to allocate more fiat into crypto.
- Investors who want to maintain their macro crypto exposure.
- Investors who trade actively between crypto and fiat positons.
For the first type of crypto investors, he said that “he doesn’t see a condition where money gets any free-er or easier than it already is. That’s why it would be a wise step on the “sidelines until the dust settles after a march or June 2022, (U.S. Federal Reserves ) rate hike.
In addition to this, for people who want to or have to allocate capital among different crypto assets, he said tokens subjected to the Metaverse, play-to-earn game, or NFT space will surely surpass the massive crypto market.
He elaborated that:
“The success of these themes do not hinge on the global monetary conditions but an actual change in behaviour of actors whose lives can be dramatically improved by adopting new forms of technology.”
The former trader at Deutsche Bank and Citi further wrote that,
The active traders who come in and out of crypto and fiat positions could be interested in hayes foresee. His forecast is that the USD dollar will strengthen over the medium term.
“Again, monetary conditions in the best case will be at a standstill, and in the worst case will be tighter.”
Meantime, he further shared his opinion on the current global economic environment. It may include burning issues such as the Evergrande crisis in China, And the potential for more stimulus from the People’s Bank Of China (PBOC) and the U.S. Federal Reserve.
Moreover, he asked in his post:
“It will be telling how large haircut Evergrande USD offshore bondholders are stuffed with. Will Beijing swoop in and provide a lifeline for overseas bondholders.
In his blog post, he further said that if Beijing were to bail out bondholders. This would be a back step from its stated stance of permitting economic contraction to happen. If it happens, then it can be considered as “a signal that the flow of cheap credit into China (and subsequently the world) will buoy all manner of risk asset prices.
Further, in his blog post, he narrated that crypto is the last market left worldwide as a free market. The Crypto market has the power to perform as the only functioning smoke alarm for the issue that may have arisen elsewhere in the financial system.
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