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📉 Fed Rate Cut Could Crash Crypto Markets, Warns Arthur Hayes 🙀

Arthur Hayes, co-founder of BitMEX, predicts that a Federal Reserve rate cut could lead to a crash in risk assets, including cryptocurrencies. 🤔

Expected to be announced soon, this cut may exacerbate inflation and strengthen the Japanese yen, which historically triggers market volatility. 📊

👀 Hayes argues that lower borrowing costs will fuel inflation, complicating the economic landscape. He highlights that a stronger yen could force investors to unwind positions financed by yen loans, as seen in August when Bitcoin plummeted from $64,000 to $50,000 due to similar dynamics. 

Despite the potential immediate negative impact on the crypto market, Hayes notes that ultra-low interest rates might eventually reignite interest in yield-bearing assets like Ethereum (ETH), which offers staking yields. 🧐

He believes that as central banks lose relevance, crypto will emerge as a portable asset in a shifting economic landscape. 🌐