Former BitMEX CEO Arthur Hayes is Feeling Bullish

In his tweet, he wrote, “Must watch: The JPY and EUR.  Expect an "intervention" to weaken the USD if JPY > 150 and or EUR < 0.90. "Intervention" means the Fed printing money. Printing money means $BTC number go up. The situation is fluid”, adding a chart below.

While the tweet received thousands of likes, some users questioned his predictions, with one Twitter handle writing, “It is not going to happen. They might increase the import duties in the U.S to lessen the effect on the local industries, other than this they will have to live with it for a couple of years until other currencies follow suit & set higher interest rates and begin appreciating Vs USD.”

Others are asking “bro”, in this case, Hayes, to “just stop”, saying “Why do people count on the FED stepping so quick? It is almost like a pavlovian response whenever they see a dip. 14 years of QE + Covid V bottom ruined it for everybody. They won't do jack shit when inflation is at 9%.”

Although Hayes’ hypothesis is yet to be tested, it seems like the market is slowly recovering from the cryptowinter. Bitcoin and Ethereum are trading at $22,628.30 and $1,524.20 respectively press time. The latter’s value has increased 41.42% over the span of one week. 

Hayes's predictions are in part echoed by other well-known crypto bulls, such as Galaxy Digital CEO Mike Novogratz who also draws a connection between BTC’s performance and the Federal Reserve policy. Last month, he said, “the moment the Fed flinches, I think you’ll see lots of traditional macro funds, who’ve had a great year, buy Bitcoin.”

Once the co-founder of BitMEX's exchange alongside Benjamin Delo and Samuel Reed, Hayes was indicted by the U.S. Department of Justice for an illegal operation. The exchange was charged under the bank security act, with Hayes stepping down in October 2020.