Despite bullish momentum in the crypto markets this week, BitMEX co-founder Arthur Hayes continues to maintain his bearish predictions about the leading cryptocurrency’s price in 2024.
On Tuesday morning, in an exclusive interview at the blockchain event Token 2049 in Singapore, Hayes claimed that the markets could crash after the Fed cuts interest rates.
Criticizing the Fed’s decision to cut interest rates (if they do), Hayes said it would be a bad idea.
“The rate cut is a bad idea because inflation is still an issue in the U.S., with the government being the biggest contributor to sticky price pressures. If you make borrowing cheaper, it adds to inflation,” he explained.
“The initial reaction is going to be negative, and the central bank’s response will be to do even more [cuts] to stem the crisis. So, I think cutting rates is a bad idea, but they’re going to do it anyway, and they’ll go to zero quickly,” he added.
Just two weeks ago, Hayes predicted Bitcoin would fall below $50k. While BTC did drop to near $53k since September 6 when he made his bearish prediction, Bitcoin has recovered over 10% and is currently trading above the $60k mark.
However, despite the current rally in BTC’s price attributed to the Fed rate cut expected to be announced on Wednesday, Hayes remains firm in his conviction that the markets will crash after the rate cut is announced.
Vitalik Buterin In His Keynote Speech Says Crypto Is No Longer In Its Early Stages
While Hayes predicted a crash, Ethereum co-founder Vitalik Buterin shared a more positive outlook in his keynote speech at the Token 2049 event in Singapore. He said that contrary to what many believe, crypto is no longer in its early stages.
He also emphasized that as the crypto and blockchain industry moves to the next phase, we will see it gain more mainstream adoption. “Crypto is more usable today than before,” he explained.
Buterin is hopeful that more use cases for blockchain technology will emerge in the near future.
Token 2049, which is being hosted in Singapore, is a global blockchain event that kicked off on Wednesday, September 18. The two-day event features more key speakers, including Solana co-founder Anatoly Yakovenko and Binance CEO Richard Teng.
