The Crypto Market Crash May Not be Over – Arthur Hayes

Arthur Hayes, a well-known crypto investor, has forecasted that the markets might soon face another downturn following the recent crash.

Hayes, the co-founder of BitMEX, predicts that the current market stability is only a brief pause and anticipates ongoing volatility in both the stock and crypto markets.

While global markets are showing some recovery—with Japan’s Nikkei up 10% after recent declines and US stock futures rising—Hayes cautions that this is just the beginning. He warns of a potential second wave of market corrections driven by issues related to over-leveraged investors.

Hayes also suggests that if the Federal Reserve intervenes, the market may endure more turmoil before stabilizing. He attributes ongoing market instability to broader geopolitical tensions, including Middle Eastern conflicts.

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ARK Invest CEO Cathie Wood has noted a significant increase in the VIX (Equity Volatility Index), comparing current levels to major past market disruptions. She points out that recent economic data and unexpected interest rate hikes by the Bank of Japan have triggered margin calls, impacting investors.

Wood also highlights a discrepancy in the 10-year Treasury bond yield, which is higher than expected, and mentions that the drop in the US dollar index could support Bitcoin prices. However, market uncertainty continues to make investors wary.

The U.S. Treasury Department’s plan to buy back $30 billion in Treasuries each month could provide further support to the crypto market.

Alexander Stefanov