- Hayes urged aggressive investing amid the market decline.
- Hayes saw Bitcoin as a hedge amid negative real returns, despite skepticism.
Well, the most discussed topic in and around the cryptocurrency space has been: Is bitcoin [BTC] A hedge against fiat currency devaluation?
While the Bitcoin halving has been the talk of the town for quite some time, Arthur Hayes, former CEO of cryptocurrency exchange BitMEX, offered insight into a strengthening trend that could fuel BTC’s continued rise.
Arthur Hayes Left Curve Approach
In his recent essay titled “Left Curve,” Hayes not only shared investment strategies but also criticized traditional financial wisdom, urging investors to adopt more aggressive strategies to maximize returns.
He said,
“Bull markets don’t happen often; “It’s a travesty when you make the right decision but don’t maximize your earning potential.”
Furthermore, emphasizing the importance of maximizing profits during bull markets and criticizing the sale of cryptocurrencies for fiat currency, Hayes said:
“If you sold shit coins for fiat money that you don’t immediately need for your living expenses, you’re screwing.”
Furthermore, shedding light on investor behavior, https://twitter.com/KaikoData/status/1783089789769494955 noted,
“Funding rates for $BTC offenders turned negative for the first time since late 2023 in the run-up to the halving.”
This suggested that there was more selling pressure in the market and that traders were willing to pay a premium to borrow BTC for short positions.
Bitcoin stands the test of time
Hayes also analyzed the relationship between real bond yields and the Federal Reserve’s balance sheet, and how economic shocks affect yields.
The suggested,
“Bitcoin is increasing non-linearly on a logarithmic chart. “Bitcoin’s rise is purely a function of an asset with a finite amount depreciating in price in fiat dollars.”
This highlighted that BTC has emerged as an alternative investment during periods of negative real returns, offering a hedge against fiat currency depreciation.
However, being skeptical of Bitcoin’s investor optimism, https://twitter.com/PeterLBrandt/status/1782832517269324267CEO of Factor LLC, Factorized,
“It is extremely interesting to note that the Bitcoin $BTC price (adjusted for inflation) has not reached a new high in three years despite the Bitcoin halving and ETFs.”
Despite such criticism, Hayes still sounded confident and suggested that as we head into the summer months, we should expect cryptocurrency volatility to decrease.
“This is the perfect time to take advantage of the recent drop in cryptocurrencies to slowly increase positions.”
Next: Bitcoin Rainbow Chart Predictions: BTC at $450,000 by 2025?
This is an automatic translation of our English version.
