BitMex crypto exchange co-founder and renowned crypto entrepreneur Arthur Hayes announced that he is resuming Bitcoin (BTC) purchases and submitted an essay explaining his decision in detail.
The whole explanation of Hayes' investment decision could be presented in two words, which are the title of the new essay: "Be Present." However, for a deeper understanding of the author's thinking, it is worth reading it in full.
What is present state of Arthur Hayes?
If we try to find a middle ground between the two words and Hayes' full text, however, we can say that he relies on U. S. monetary policy, or rather, what actions it forces regulators to take.
In particular, the essay deals with the state of the Treasury General Account (TGA) and debt. Thus, according to the author's expectations, because the U.S. debt ceiling has peaked, the Treasury will start spending money from the TGA to buy it, thereby adding liquidity to the system and raising asset prices, including those of cryptocurrencies. At the same time, the effect of the U.S. Federal Reserve's monthly balance sheet clean-up as part of its quantitative tightening policy will be offset.
Thus, at some point, Hayes says, such actions will lead to a deadlock, where choices have to be made that will definitely hit the markets. However, he concludes, one must keep a flexible mind and be in the present.