Arthur Hayes has issued a stark warning for Bitcoin investors, suggesting that the cryptocurrency could fall to $50,000 in a worst-case scenario. In his latest article titled “Boom Times… Delayed,” Hayes expresses a cautious outlook on Bitcoin and the broader cryptocurrency market. He has projected continued declines until a possible intervention later this month.
Hayes expects the macroeconomic factors and policies of the Federal Reserve to influence his forecast. While the Fed has recently been less active on rate rises, the bond market has responded significantly, with 10-year US Treasury yields for example, hovering around 5% and rising due to inflation and government spending. This has led to a decline in the stock market by 10 percent and increased worries over the regional bank’s stability.
Hayes Sees Central Bank Actions as Key to Future Bitcoin and Altcoin Growth
Despite this, Hayes believes that Bitcoin and certain reliable altcoins are sound investments for the long term but should not be leveraged. He expects large-scale market stabilization measures that will probably take the form of injections could calm the situation and help to raise the price of Bitcoin in late September.
For the time being, Hayes is interested in purchasing low-Altcoins known as “shitcoin projects”, but recognizes the volatility of the short-term fluctuations. His wider view is that central banks may turn to money printing to address economic problems, which is positive for BTC and other risky assets.
Hayes also mentions that the processes of transitioning from deflation to inflation, especially due to the COVID-19 pandemic, have influenced contemporary monetary and fiscal policies. Since March 2022, the Fed has aggressively raised the interest rate intending to tame inflation despite high current inflation rates, and this has not led to a rise in long-term bond yields. The situation has remained relevant to the Treasury market and affects other elements of financial conditions.
