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Co-founder of the cryptocurrency exchange BitMEX and investment director of the Maelstrom fund, Arthur Hayes, stated that the primary obstacle to Bitcoin’s growth is the lack of liquidity in the markets.
He noted that fluctuations in the price of the leading cryptocurrency reflect global concerns regarding liquidity, which have intensified in recent weeks.
“Bitcoin is particularly sensitive to credit risk. Sustainable growth will not occur until central banks engage in substantial monetary easing,” Hayes remarked.
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He also pointed out the impact of artificial intelligence on the economy. According to his assessment, the advancement of AI enhances productivity but simultaneously reduces jobs, particularly among mid-level professionals. This could complicate the servicing of the national debt in the United States, where consumption plays a crucial role.
In such a scenario, Hayes anticipates a worsening of issues within the banking sector, which may compel the Federal Reserve to resort to extensive money printing once again. He believes this could serve as a catalyst for Bitcoin’s growth.
The investor added that over 90% of his capital is allocated to Bitcoin. However, if he had available funds at present, he would consider other investment options rather than increasing his position in the leading cryptocurrency.
Previously, Arthur Hayes suggested that the first cryptocurrency might experience a sharp decline in the short term before transitioning to a phase of sustainable growth. This is influenced by stringent economic conditions and rising global risks.
