Arthur Hayes Urges Crypto Investors to Be Patient
Crypto Investors Should Stay Patient Amid Market Volatility
Arthur Hayes, co-founder of BitMEX, has urged crypto investors not to panic over Bitcoin's recent downturn, emphasizing that corrections are normal in both crypto and traditional markets.
According to Hayes, Bitcoin could find its bottom at $70,000, representing a 36% correction from its all-time high of $110,000. However, he reassured traders that this is part of a larger macroeconomic cycle that will eventually push Bitcoin to new highs.
"You need the TradFi sector to go under. Then you load the truck," Hayes advised, suggesting that Bitcoin's next bull run will align with a downturn in traditional financial markets.
Hayes believes that before Bitcoin resumes its uptrend, the traditional financial sector must first experience a significant decline. Once this happens, central banks will step in with aggressive monetary easing:
- The U.S. Federal Reserve (Fed)
- The People's Bank of China (PBOC)
- The European Central Bank (ECB)
- The Bank of Japan (BOJ)
When these institutions resume money printing to prevent economic downturns, Bitcoin will benefit as investors seek refuge in hard assets like BTC.
"Traders will try to buy into the dip. If you are more risk-averse, wait for central banks to ease policy before investing more capital," Hayes explained.
For cautious investors, Hayes suggests a measured approach—avoiding the risk of catching the absolute bottom but also minimizing stress from prolonged sideways movements.
Bitcoin vs. Traditional Markets: The True Free MarketHayes emphasized Bitcoin's unique trading advantages over stocks and traditional assets:
| Asset | Trading Hours | Liquidity Control | Market Access |
|---|---|---|---|
| Bitcoin (BTC) | 24/7 | Cannot be printed | Anyone with internet access |
| Stocks | 8 hours/day, 5 days/week | Subject to Fed & institutional control | Limited to accredited investors |
"BTC is a true free market, but stocks are not. During a fiat liquidity crisis, Bitcoin drives stocks up and down," Hayes explained.
Unlike equities, which rely on institutional control and government bailouts, Bitcoin operates decentralized and globally, making it a leading indicator for broader financial market trends.
Bitcoin as a Strategic Reserve: Political or Financial Play?Hayes also warned that governments creating Bitcoin reserves are driven by political motives rather than financial benefits. While Bitcoin's adoption as a national reserve asset may legitimize its status, Hayes remains skeptical of government involvement in crypto markets.
"The authorities are primarily pursuing their own political goals, not trying to benefit people financially," he stated.
This echoes concerns that governments could use Bitcoin reserves for geopolitical leverage rather than true monetary decentralization.
Final Thoughts: The Path to Bitcoin's Next Surge- Bitcoin's correction to $70,000 is normal in a high-volatility asset class.
- Central bank liquidity policies will determine the next bull cycle.
- Bitcoin remains the world's only 24/7 free market, unlike stocks and fiat-driven assets.
- Government Bitcoin reserves may serve political agendas rather than true financial decentralization.
For now, patience and strategic accumulation are key, as Hayes predicts Bitcoin's next upward phase will be driven by central bank intervention—a scenario that has historically fueled major price surges in crypto and hard assets.
