Arthur Hayes: Rate cuts will likely cause risk assets to fall in the short term, and the era of central banks is over

Arthur Hayes, founder of BitMEX and CIO of Maelstrom, said at Token2049 that with the upcoming interest rate cut by the Federal Reserve, risky assets may fall in the short term, especially the rise in the yen exchange rate may hit the crypto market. However, as interest rates fall to near zero, high-yield assets such as Ethereum will benefit. Ethereum's current annualized staking yield is about 4%. Once the Fed's interest rate cut causes the U.S. Treasury bond interest rate to fall below 4%, ETH will become extremely attractive and may trigger a new round of bull market. In addition, tokens such as Ethena's USDe and Pendle's BTC staking will benefit from this. Hayes also pointed out that the era of central banks is over, governments will dominate monetary policy, and crypto assets will become the only globally transferable safe-haven tool. (CoinDesk)