BitMEX Co-Founder Arthur Hayes Urges Market Participants to 'Buy Everything'

Arthur Hayes, co-founder of BitMEX, has urged market participants to “buy everything” following recent signals from the US Federal Reserve.

April 11, 2024

Good morning traders, and welcome back to Point Of Interest.

Last night, I was thinking about the state of play in the markets broadly.

Now, I’ve spoken a lot about how rising interest rates, particularly the 10-year US Treasury rate going over 4.5%, could be the tipping point for government intervention.

With such pressure, I’ve argued that the Fed might be pushed to intervene with more liquidity, which could favor risk assets like Bitcoin.

This scenario, I suggested, could lead to a prolonged upward move in crypto and broader markets.

Well, it seems we’re already seeing signs of that intervention, at least in terms of thinking about reducing the pace of rate hikes.

Susan Collins, president of the Boston Federal Reserve, said on Monday that while markets are still functioning well, the US central bank stands ready to step in if liquidity becomes strained.

Speaking to the Financial Times, Collins said the central bank has the tools to ensure stability if disruptions arise. But she added that cutting interest rates is not the Fed’s first port of call, as other tools are available to stabilize financial markets when needed.

“The core interest rate tool we use for monetary policy is, certainly not the only tool in the toolkit and probably not the best way to address challenges of liquidity or market functioning,” she said.

These developments come as the global economy is already facing difficulties, with President Donald Trump’s new wave of tariffs adding another layer of uncertainty to financial markets.

The administration has postponed the introduction of new tariffs for 90 days, but it has drastically increased duties on Chinese goods, raising the combined tariff to 145%. In response, China has also increased tariffs on American imports, raising them from 84% to 125%.

These reciprocal measures could contribute to heightened inflation in the US, potentially leading to job losses and slower economic growth. Already, Wall Street has witnessed substantial market declines, and the US Treasury market is showing signs of stress.

Despite the temporary suspension of new trade penalties, underlying tensions remain high. However, for me, the combination of macro stress and central bank intervention presents a clear signal: this may be the moment to accumulate assets before the tide turns.

As we emerge from a prolonged period of low interest rates and quantitative easing, it’s no surprise that imbalances are emerging in the markets.

These imbalances, in turn, are prompting central bankers to intervene and attempt to restore stability to the financial system.

And with the Fed likely to pivot on interest rates this year, it appears we’re entering a period where the central bank will be intervening to keep markets afloat.

This, in my view, is good news for traders and investors, as it could lead to sustained upward pressure on asset prices.

So, my advice to market participants is simple: buy everything.

With central banks stepping in to stabilize the system, and imbalances being corrected, it’s a favorable environment for traders and investors across the board.

From Bitcoin to US equities, there are opportunities to be seized in this shifting market landscape.