Arthur Hayes, founder of BitMEX, indicates that cryptocurrency markets will begin to rebound following fluctuations during the upcoming election period. In a recent interview on The Big Whale YouTube channel, Hayes pointed out that the liquidity environment for crypto assets has positively changed. He emphasized that the Federal Reserve and other central banks have eased their monetary policies.
Improvement in the Liquidity Environment
Hayes underscored the positive impact of the improved liquidity environment on cryptocurrency markets. He stated that the reversal of tight monetary policy by the Fed and other major banks through interest rate cuts has created a desired environment for risk assets. The decrease in money cost, facilitated by lower interest rates, allows governments to ease monetary policies to avoid hampering economic growth, especially as inflation risks, which had plagued economies post-pandemic, are now under control. Consequently, more liquidity is expected to flow back into cryptocurrencies.
Hayes predicts that the U.S. elections will temporarily harm risk assets. He noted that uncertainties during the election process could hinder a potential rally in the crypto markets. Additionally, he mentioned that due to the risks associated with election uncertainties, he would refrain from making more purchases over the next few months.
Future Expectations
Looking ahead, Hayes anticipates that after the elections, the government will increase spending and the dollar will depreciate, leading to a rise in the values of cryptocurrencies like Bitcoin 
$63,542. He expects that if Trump wins, he will implement tax cuts, while Harris is likely to increase welfare payments. Therefore, he suggested that both parties will ultimately agree to increase government spending, resulting in a similar outcome.
“The winning side will print money, creating a favorable environment for crypto assets.”
As the crypto markets are expected to gain momentum post-elections, Hayes stresses the importance of caution among investors, noting that uncertainties in the markets may persist. It is crucial for market participants to closely monitor developments during the election process.
Finally, Hayes expresses his belief that the cryptocurrency markets will regain momentum after the election period, urging investors to act wisely. Ultimately, it can be said that with the Fed reducing interest rates and more money being printed regardless of who is elected, the outlook for cryptocurrencies is not as grim as it may seem.
