Arthur Hayes: The Fed's 50 basis point rate cut will trigger a short-term market rebound, but will ultimately expose deeper problems in the global financial system

Odaily Odaily ByBit Institutional Director Chris Aruliah has a different view on the impact of rate cuts on the crypto market. Aruliah wrote in an emailed statement: "The general slowdown in the global economy caused by weaker economic indicators and geopolitical complexities is weakening investor sentiment. Therefore, although the Fed's 0.5% cut in the policy rate may boost the cryptocurrency market in the short term, it is critical to remain vigilant to the potential challenges posed by economic uncertainty and market volatility." BitMEX co-founder Arthur Hayes pointed out in an interview that he believes that an overall rate cut is unnecessary. A 50 basis point rate cut will trigger a short-term market rebound, but it will eventually expose deeper problems in the global financial system, causing prices to fall further. He said: "At a high level, I don't think they should raise interest rates. I believe the U.S. economy is quite strong. If you look at the GDP data for the past eight or nine quarters, you will find that it has been growing continuously. If they decide to continue to cut interest rates, inflation will accelerate into the fourth quarter." (CoinDesk)