According to WuShuo, Arthur Hayes published a new article (Sugar High) discussing the impact of the Fed’s monetary policy on the market. He believes that the Fed’s interest rate cut is similar to a short-term “sugar stimulus” that temporarily boosts market sentiment, but an increase in money supply is required to maintain growth.
Hayes mentioned that the appreciation of the yen could pose risks to global markets, especially putting pressure on dollar-based assets. He warned that if the yen continues to appreciate, the Federal Reserve may need to take more aggressive measures, such as resuming quantitative easing, to stabilize the market.
He is optimistic about the liquidity environment in global financial markets in the coming months, believing that crypto assets such as Bitcoin may benefit in this situation.