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Arthur Hayes, the former CEO of BitMEX and a well-known figure in the crypto world, recently weighed in on the current market correction. Amid rising concerns related to Binance and the subsequent market downturn, Hayes took to social media to share his perspective.
He attributed the market's unease to the potential refilling of the Treasury General Account (TGA) by the end of the summer. His remarks hint at a prevailing theory among some investors that the TGA's fluctuations can influence liquidity and, in turn, impact financial markets. According to Hayes, the market will recover once this issue is resolved, thanks to the "large amount of money printing humming along in the background."
The market is down on some binance FUD. But regardless of the catalyst, risk mrkts r on edge cause of the TGA refill. By end of summer the mrkt will move past that and onto the lg amt of money printing humming along in the background. I have a few shitcoins to buy in the meantime pic.twitter.com/w52QABpgvJ
— Arthur Hayes (@CryptoHayes) June 6, 2023
His strategy in the meantime? Hayes expressed his intention to use this period of market correction to purchase more "shitcoins," a colloquial term in the crypto community for lesser-known or low-value cryptocurrencies.
Hayes' strategy underscores an important principle in investing: buying low and selling high. The current market correction might represent a buying opportunity for certain investors who believe in the long-term prospects of cryptocurrencies. While these assets may be experiencing price drops now, Hayes suggests that the general trend of money inflow into the market will help their value rebound.
However, it is crucial to remember that Hayes' perspective does not constitute financial advice, and every individual should thoroughly research and consider their risk tolerance before making investment decisions.
It is also worth noting that the strategy he presents comes amid a legal battle between Binance, the world's largest cryptocurrency exchange, and the U.S. Securities and Exchange Commission (SEC). The SEC has sued Binance for operating an unregulated exchange in the U.S., adding a layer of complexity to the current market climate.
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