Arthur Hayes: A 50 basis point rate cut by the Federal Reserve will trigger a brief market rebound, but will ultimately expose deeper issues in the global financial system

ChainCatcher news, ByBit's institutional head Chris Aruliah has a different view on the impact of interest rate cuts on the crypto market. Aruliah wrote in an email statement: "The softening economic indicators and the geopolitical complexities leading to a general slowdown in the global economy are weakening investor sentiment. Therefore, while the Federal Reserve's decision to cut the policy rate by 0.5% may provide a short-term boost to the cryptocurrency market, it is crucial to remain vigilant about the potential challenges posed by economic uncertainty and market volatility."

BitMEX co-founder Arthur Hayes pointed out in an interview that he believes an overall rate cut is unnecessary, and a 50 basis point cut would trigger a brief market rebound but ultimately expose deeper issues within the global financial system, leading to further price declines.

He stated: "At a high level, I think they shouldn't raise rates. I believe the U.S. economy is quite strong. If you look at the GDP data from the past eight or nine quarters, you'll see it has been consistently growing. If they decide to continue cutting rates, inflation will accelerate into the fourth quarter."