Arthur Hayes: Global monetary easing trend will drive crypto market up

Odaily Odaily News BitMEX co-founder Arthur Hayes wrote that based on the Fed's historic response to "high volatility", we know that once they start cutting interest rates, they usually continue to cut until interest rates are close to 0%. In addition, we also understand that the growth of bank credit must be accompanied by accelerated interest rate cuts. The Fed will continue to cut interest rates, and the banking system will continue to release more dollars. No matter who wins the US presidential election, the government will continue to borrow to gain public support. The European Central Bank will respond to the economic downturn by lowering euro interest rates. At the same time, governments will begin to force banks to lend more to local businesses in order to provide jobs and rebuild the crumbling infrastructure. As the Fed cuts interest rates and US banks issue more credit, the US dollar will weaken. This allows the Chinese government to increase credit growth while keeping the dollar-yuan exchange rate stable. If the Fed prints money, the People's Bank of China can do the same. This week, the People's Bank of China announced a series of interest rate cuts, and this is just the beginning. If other major economies are now easing monetary policy, the pressure on the Bank of Japan to raise interest rates quickly will be reduced. The governor of the Bank of Japan has made it clear that he will normalize interest rates. But given that interest rates in other countries are falling to the low levels he has set, he won’t have to catch up so quickly. Once again, the world’s leading economies are suppressing volatility in their countries or economic blocs by lowering the price of their currencies and increasing the quantity of their currencies. If you’re already cross margin in cryptocurrencies, sit back and watch the fiat value of your portfolio soar.