Arthur Hayes

Arthur Hayes: The Federal Reserve's interest rate cuts will lead to a weaker dollar, and the global wave of monetary easing presents opportunities for the cryptocurrency market

ChainCatcher news, BitMEX co-founder Arthur Hayes posted on social media that based on the Federal Reserve's historical responses to high volatility, we know that once they start cutting interest rates, they usually continue to lower them until rates are close to 0%. The Federal Reserve will continue to cut rates, and the banking system will continue to release more dollars. Regardless of who wins the U.S. presidential election, the government will also continue to borrow to gain public support. Economic difficulties will be addressed through lower euro rates set by the European Central Bank. Meanwhile, governments will begin to pressure banks to lend more to local businesses to provide job opportunities and rebuild the increasingly crumbling infrastructure.As the Federal Reserve cuts rates and U.S. banks issue more credit, the dollar will weaken. This provides an opportunity for the Chinese government to increase credit growth while maintaining the stability of the RMB to USD exchange rate. If the Federal Reserve prints money, the People's Bank of China can take similar measures. This week, the PBOC announced a series of interest rate cuts across the Chinese financial system. This is just the beginning; the real "big weapon" will emerge when banks issue more credit. If other major economies are now easing monetary policy, the pressure on the Bank of Japan to raise rates quickly will decrease.Major global economies are once again suppressing the volatility of their countries or economies by lowering the cost of funds and increasing the supply of funds. If you have fully invested in cryptocurrencies, relax and watch the fiat value of your portfolio soar. If you still have some fiat funds, seize the opportunity to enter the crypto market.
ChainCatcher Building the Web3 world with innovators