As institutions look to get into cryptocurrencies, BitMEX co-founder Arthur Hayes said Dogecoin is too popular for fund providers to ignore.
According to Hayes, regulators will definitely approve the Dogecoin ETF after both Bitcoin and Ethereum hit the US mass market.
In a Sunday interview with Real Vision CEO Raoul Pal, the two investors looked at their favorite memecoin and cryptocurrency picks this cycle, as well as the daily risks. head is now stalking the user.
Why Memecoin Will Keep Winning: Arthur Hayes
According to Hayes, memecoin still has plenty of room in this cycle, with the market sure to get “crazier” as the Federal Reserve and the US Treasury print more and more money.
“For someone new to cryptocurrency, memecoin is really the easiest thing to understand. I don't need to understand blockchain, AI, cryptocurrency and cryptography.”
In a blog post last week, Hayes argued that it was time to “Go Long Bitcoin and then Shitcoin,” in response to successive interest rate cuts by both the Bank of Canada and the European Central Bank. In the past, a low interest rate environment has boded well for stocks and Bitcoin, which has caused capital to flood into the riskier, more volatile memecoin market.
Both Hayes and Pal said they have locked up portions of their portfolios in dog-themed coins, including Dogecoin (DOGE), BONK and dogwifhat (WIF).
Investors also agree that Dogecoin will receive ETF approval in the United States by the end of the current bull market cycle.
“This is the oldest memecoin, it is on Robinhood. If people are thinking about the traditional market entering the crypto space and they are going to bet on ETFs, Dogecoin would be one of the options with a high market cap.
DOGE is now up 136% over the past year. Since its launch in December, WIF has surged nearly 1,600%.
Trends to watch during this cycle
Regarding other cryptocurrencies, Pal said he is 90% in love with Solana and called it “the right bet.” In contrast, Hayes said he predicts that Aptos, the 27th-ranked cryptocurrency by market capitalization, will topple Solana “in the layer-1 realm” within the next one to three years.
As for what to avoid, both men agree that Cardano is a “last cycle story,” and Pal is also taking aim at Ripple (XRP).
The two investors also have similar concerns about the major risk factors for cryptocurrencies this cycle.
Both highlight large centralized locations that control the majority of the cryptocurrency market. Pal expressed concern about Derebit's 90% dominance in the options market, while Hayes argued that Coinbase and other banks, which control the Bitcoin that powers the world's largest Bitcoin ETFs, have can cost customers a lot of money.
“If I was intending to hack crypto, I would pay attention to one of the custodial banks in the United States. Never before have they had to hold an asset that if they lost it, they couldn't call the Treasury or the Fed for another bailout.”
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