TL;DR Breakdown
- Arthur Hayes addresses the current developments of cryptocurrencies amid the regulation rumors.
- Hayes advises the crypto world to sit back and wait for signals on the regulatory directions in the coming year.
The former Bitmex CEO and co-founder says that cryptocurrencies are in a critical era where the government is figuring out how to regulate them. He went ahead to point out that more governments may follow suit of the PBoC fight against cryptos while others may take new paths. However, he asks crypto enthusiasts to wait for the signals in 2022.
Arthur Hayes addressed this issue through a digest titled ‘Circo Loco.’ In this digest, he talks about cryptos while referring to the looming claims of possible regulations and the Evergrande event of China.
Hayes gives his analysis of the crypto market
According to Arthur Hayes, prices will be significantly affected by China’s ongoing crypto regulation activities and the US reserve’s tapering process. He said that the FED might tighten the crypto measure to a point where it will suppress their value. He also stated that the FED might also regulate the crypto space till some parts of the Treasury function abnormally.
He added that if a bear market occurs in the stocks, the FED will retaliate by upholding the QE and printing policy.
According to Hayes, BTC and ETH may not make new ATHs soon. Therefore, the investors should be ready to take advantage of a sideways market. These predictions echo a recent report from Huobi known as ‘Taper Landed.’ This report says that a restriction targets market liquidities, the performance of the dynamic markets will have adverse effects.
Therefore, Hayes says that new investments should first wait for better trading opportunities, mainly after March or June. He proposes this time since he believes the FED will be through with their rate hikes.
Hayes advises investors to focus on the metaverse as regulatory uncertainties prevail
Hayes says that investors eager to join the crypto market right now should think about the metaverse. He particularly noted that the best projects to choose right now are the ones that involve p2e, metaverses, and NFT tokens.
According to him, these projects may not suffer many effects since their operations are not directly affecting the economy. He says such projects instead rely on other factors like introducing new technologies to gather market support.
As Arthur Hayes says, the governments look to be very serious about crypto regulation in recent times. China was the first country to introduce a blanket ban on cryptos, while India almost introduced a similar ban. However, the US government seems to be taking a different procedure. However, it is also very clinical, even though it’s not making any hurried decisions.
In 2021, the SEC accepted trading of several BTC ETFs in the US markets and listed them too. However, it is also good to note that some BTC ETFs were declined since they did not meet their requirements. This stance signals that this superpower is very watchful of the cryptos, and the best way to cope with it is to watch from afar.
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