Former BitMEX CEO Arthur Hayes is reasserting his call for a parabolic price rally for Ethereum (ETH) near the end of this year.
In a recent blog post, Hayes says he’s sticking to his prediction that Ethereum will trade at $10,000 by the end of the year even if he’s slightly less confident on when ETH will hit his target.
The crypto billionaire’s thesis leans on his prediction that the Federal Reserve will ultimately renege on its agenda of trying to curb inflation through the tightening of central bank liquidity.
According to Hayes, baby boomers, the largest voting block in the US, will become increasingly discontent with the Fed’s monetary policy leading up to the midterm elections in November of this year. He says political pressure from the baby boomers could force the Fed to shift its stance and trigger another bull run in risk-on assets like cryptocurrencies.
“The baby boomers are the largest and wealthiest generation, as well as the most important voting block. They own a large percentage of global financial assets and are now embarking on retirement, which means subsisting on a fixed income. Poorly-performing financial assets and rising fuel and food inflation are the two worst things a financial asset-heavy retiree can experience. The boomers will rage against the machine and set us free from the cage of tight central bank liquidity.”
Hayes predicts that the Fed will likely send a clear signal to investors that a low-interest-rate environment is back in play.
“The Fed will not be coy about its about-face. The pivot will be clearly telegraphed, and those waiting for a signal that it’s on like Donkey Kong will receive it. For patient traders whose time frame spans many years, it pays to wait.
You don’t want to sell filthy fiat and buy Bitcoin / Ether early only to get shook due to a lack of confidence in your investment thesis. It is better to wait for the all-clear signal from the high clergy of the devil that it is time to join the crusade.”
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