Do You Want to Buy Bitcoins? Arthur Hayes Says Now Is the Perfect Time to Buy Bitcoins. But Why?
Journalist
- Hayes recommended aggressive investing despite the market decline.
- Despite his skepticism, Hayes viewed Bitcoin as a hedge against negative real returns.
The most discussed topic in the crypto space is: Is Bitcoin a good investment? [BTC] A hedge against the devaluation of fiat currencies?
Arthur Hayes (former CEO of BitMEX) has provided insights into a trend that could drive BTC’s continued rise.
Arthur Hayes’ Left Curve Approach
In addition to laying out investment strategies, Hayes’ recent article titled “Left Curve” criticized traditional financial wisdom. He encouraged investors to pursue aggressive strategies to maximize their returns.
He said:
Bull markets are rare; it’s a shame to make the right decision but not maximize your profits.
Hayes also stressed the importance of maximizing profits during bull markets and criticized the selling of cryptocurrencies for fiat currencies.
You made a mistake if you sold sh*tcoins for fiat currencies to get money you didn’t immediately need for your living expenses.
Kaiko also noted that this sheds light on investor behavior.
In the run-up to the halving, “funding rates on $BTC perps turned negative for the first time since late 2023.”
Source: Kaiko/ Twitter
This suggested that the market was under greater selling pressure and traders were willing to pay a premium for BTC to cover short positions.
Bitcoin is a currency that will be around for a long time
Hayes also looked at the relationship between the Federal Reserve’s balance sheet and real bond yields, as well as the impact of economic shocks on yields.
Source: Arthur Hayes/Medium
He opined that
Bitcoin is rising non-linearly on a logarithmic chart. Bitcoin’s growth is entirely the result of an asset that has a limited supply and is valued in fiat dollars.
The BTC market has emerged as a viable alternative to fiat currencies during times of negative real returns.
Peter Brandt, CEO of Factor LLC and skeptic of Bitcoin’s investment optimism, took this into account.
It is interesting to note that the (inflation-adjusted) Bitcoin price of $BTC has not reached a new high in three years, despite Bitcoin ETFs and halving.
Hayes was confident despite this criticism. He opined that we could expect a decrease in cryptocurrency volatility as we enter the summer months.
The recent drop in cryptocurrencies is the ideal time to slowly increase your positions.
