BitMEX founder Arthur Hayes stated that crypto markets will begin to mobilize again after the fluctuations that may occur during the upcoming election period. In a new interview on The Big Whale YouTube channel, Hayes stated that the liquidity environment for crypto assets has changed positively. He pointed out that the Fed and other central banks have loosened monetary policy.
Improvement of the Liquidity Environment
Hayes emphasized that the improvement of the liquidity environment of crypto assets has a positive impact on the markets. He said that the Fed and other major banks’ reversal of tight monetary policy with interest rate cuts has prepared the desired environment for risk markets. The cheapening of money is possible by decreasing interest rates, and since the risk of inflation that stifled economies after the pandemic is now under control, states are loosening monetary policy in order not to undermine economic growth. More liquidity will thus return to cryptocurrencies.
Hayes predicts that the US elections will cause temporary damage to risk assets. Uncertainties that may occur during the election process may prevent a possible rally in crypto markets. Hayes also announced that he would not make any further purchases due to the risk posed by election uncertainty in a few months’ time.
Future Expectations
Hayes said that after the election, the government will increase spending, the dollar will lose value, and as a result, Bitcoin 
$64,067 He predicts that crypto assets such as will gain value. He also expects Trump to cut taxes (if he wins) and Harris to increase welfare payments. Therefore, he said that both parties agreed to increase the government’s spending and the result will not change.
“The winner will print the money, which will create a positive environment for crypto assets.”
While crypto markets are expected to be active after the election, Hayes emphasized that investors should be careful and stated that uncertainties in the markets may continue. It is important for market participants to closely follow the developments in the election process.
Finally, Hayes said that he believes that crypto markets will gain momentum again after the election process and that investors should act consciously during this period. Ultimately, we can say that cryptocurrencies do not have such bad days in an environment where the Fed lowers interest rates and more money is printed no matter who is elected.
The future of crypto markets may be shaped depending on the US election results. Investors should consider that crypto assets may appreciate as the liquidity environment improves and government spending increases.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
