The trend is unmistakable. Central banks are beginning to ease monetary policies. This is the moment to invest heavily in Bitcoin and altcoins.
Central to Hayes’ critique is the G7’s handling of the Japanese yen, which he argues is misguided.
Hayes previously suggested that the US Federal Reserve (Fed) should swap unlimited amounts of newly printed dollars with the Bank of Japan (BOJ) for yen. This move, he posited, would give the Japanese Ministry of Finance unlimited dollar resources to buy yen in global forex markets, thereby strengthening the yen.
However, he noted that the G7’s current strategy seems to focus on convincing markets that the interest rate differential will narrow over time, which he believes will lead to buying yen and selling other currencies.
The core of Hayes’ argument lies in the disparity between the BOJ’s policy rate of 0.1% and the 4% to 5% rates of other G7 central banks. He contends that this differential fundamentally drives exchange rates.
New highs
Hayes sees these conditions as a catalyst for the crypto market. He indicated that he is shifting his own investments from stablecoins back into “high-conviction shitcoins,” although he plans to reveal specific tokens only after securing his positions.
He also urged projects within his Maelstrom portfolio to proceed with token launches without delay.
Reflecting on historical trends, Hayes noted that both traditional equities and Bitcoin have historically surged during periods of low interest rates.
He pointed to Bitcoin’s dramatic rise from under $4,000 to $64,000 between March 2020 and April 2021, following the Feds drastic rate cut to 0.25%.
