Crypto is poised for a rally, Arthur Hayes suggested in a Monday post. The co-founder of BitMEX previously predicted that Bitcoin would suffer due to a sharp rise in the yen.
BitMEX co-founder Arthur Hayes has again shifted his position on crypto's near-term fortunes as Japan's yen slides and Bitcoin bucks its traditional September retreat.
“I made a mistake,” Hayes, who now runs a crypto-focused venture fund, said. Said X opened Monday, citing the solid weekend performance of the yen and Bitcoin.
“[Let’s f*cking go]And let the good times roll,” he continued. “Time to trade some dogshit meme coins.”
Hayes did not immediately respond DL News' Request for comment.
Hayes's view on Bitcoin and the broader crypto market has come to light in recent months, along with his belief that political imperatives will push the US government to increase the dollar supply.
Earlier this year, he predicted that geopolitical tension would force the US to print dollars to prop up the yen.
“Crypto booms,” Hayes wrote in May, as more dollar liquidity floats into the system. “Bitcoin is the best-performing asset in the face of global fiat debasement.”
The theory was foreshadowed in August, when crypto fell just days after the Bank of Japan raised interest rates in an effort to curb inflation. Increasing interest rates usually increases the currency in question.
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Despite the setback, Hayes predicted that US Treasury Secretary Janet Yellen would try to stimulate the economy to lift the odds of fellow Democrat Kamala Harris taking the White House in November's presidential election.
“The next stop for Bitcoin is $100,000,” Hayes wrote in an August blog post.
“The combination of a dollar liquidity-fueled bitcoin and ether rally creates a strong foundation for the return of the sexy shitcoin soiree later in the year,” he added, referring to cryptocurrencies that aren't bitcoin or ether.
A month later, he changed his mind.
“BTC is huge, I'm gunning for sub $50k this weekend,” he said wrote that In X, he said he took a short position in Bitcoin. Two days later, he Suggested A rising yen spells trouble for the original cryptocurrency.
It's a reasonable bet: On average, September has historically been a rough month for Bitcoin, showing a -5% normalized return and making it one of the weakest months of the year.
Yet Bitcoin had an exceptional month, recovering from around $52,000 to trade above $63,000 on Monday.
Analysts at Bernstein attribute bitcoin's rally to a number of factors, including the Federal Reserve cutting interest rates by 50 basis points, aggressive forays into microstrategy bitcoin and bitcoin's entry into exchange-traded funds.
Meanwhile, according to Bernstein, the German government's $3 billion bitcoin sale and the long-awaited Mt. Gox's bankruptcy filings have eased concerns.
Alex Gilbert DL News'Diffie correspondent from New York. You can reach him at [email protected].
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