Commenting in detail on the current situation of the cryptocurrency market in his blog post published yesterday, Hayes drew attention to the date of July 4 in the short term.
“By the end of the second quarter, June 30, the Fed will have enacted a 75 basis point rate hike and started shrinking its balance sheet. July 4th falls on a Monday, also American Independence Day when the banks will be closed. This is another 'mega' in crypto. ' the perfect setting for fall."
Hayes predicts that between June 30 and July 5, there may be sharp downward movements. The former CEO of BitMEX presents an optimistic picture in the longer term. Drawing attention to the midterm elections that will take place in the USA in November, Hayes used the following statements;
"The Democrats will most likely lose the House and Senate. This will create a lame duck situation for the Biden administration for two years."
Noting that the most important issue for American voters is their personal economic situation, Hayes expects a 180-degree turn from "Fed should fight inflation" to "Fed should relax financial conditions" in the messages to be given by Biden administration. The American entrepreneur claims that the Fed, with the support of the White House, can continue to do what it always does, print money.
Hayes stated that the liquidity conditions in financial markets will be bad for the next 6-12 months, while he described the current period as a "planting season" before central banks increase liquidity. Hayes drew particular attention to DeFi projects.
“If you believe the basic premise that the number of addresses will continue to increase, certain projects with protocol-level revenue-raising models will still exist and even grow in this bear market.”
Finally, Hayes reminded that in early June, he was wrong in his view that the 25 thousand to 27 thousand regions are the bottom region for Bitcoin, “I am more wrong than right when it comes to predicting the market.” said. The former CEO of BitMEX stated a few days ago that a big selling wave could be triggered if the $20,000 level in Bitcoin and the $1,000 level in ETH are broken.