Crypto NewsAltcoinArthur Hayes Says FED Is Acting Politically, Points to Friday in Bitcoin!

Arthur Hayes Says FED Is Acting Politically, Points to Friday in Bitcoin!

Arthur Hayes said he thought the FED's decision to cut interest rates by 50 basis points was politically motivated.

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The FED cut interest rates by 50 basis points as announced yesterday. Despite the interest rate cut, market sentiment is mixed regarding the sustainability of the rise in the cryptocurrency market, and some names are skeptical about the rise.

One of these skeptics was BitMEX co-founder Arthur Hayes.

Interest Rate Decision Was Taken Politically!

Speaking to Cointelegraph at the Token2049 conference in Singapore, Hayes said he believes the Fed’s decision to cut interest rates by 50 basis points was politically motivated.

Hayes said the Fed's 50 basis point rate cut yesterday may have been politically motivated to boost financial markets and consumer confidence ahead of the November elections, thus supporting Democratic candidates.

“I think Jerome Powell and Janet Yellen wanted to stimulate the financial markets to help Kamala Harris win the election, and they acted with that purpose.”

Stating that a 50 basis point reduction would increase inflation, the famous name said that this decision has the potential to negatively affect both traditional and cryptocurrency markets.

Hayes, who evaluated the crypto market's reaction to the interest rate cut, which led to a 4 percent increase, as “the calm before the storm”, said that he expected the real reaction to occur after the close of traditional financial markets on Friday.

“It looks like you get the initial reaction and then the real reaction goes towards the close for the TradFi markets on Friday and then the coin moves either up or down throughout the weekend.”

All Eyes on Japan for Bitcoin!

Hayes said that after the FED's interest rate decision, all eyes are on the Bank of Japan, which will announce its interest rate decision on Friday, September 20.

At this point, Hayes stated that the weakening Japanese yen will further strengthen Bitcoin.

“After the FED rate cut, all eyes are now on the BOJ interest rate decision to be announced on Friday.

Watch USD/JPY like a hawk.

In the very short term:

JPY weak = BTC strong JPY strong = BTC weak

*This is not investment advice.



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