BitMEX founder Arthur Hayes said there will come a time this year when the risk curve begins to shift capital into select altcoins.
In a new essay, Hayes says the digital asset industry could experience a “disappointment” by President Trump if he ultimately does not support cryptocurrencies as much as he campaigned, sending market prices down.
But he says if that were to happen, a flood of new liquidity from the Treasury and the Federal Reserve could easily balance it out.
“The extremely positive dollar liquidity environment in response to Trump’s proposed pro-crypto and pro-business legislation could add up to $612 billion in the first quarter. As with almost every other year, if all goes according to plan, late in the first quarter will be the time to sell, relax on a beach, (club) or ski resort in the Southern Hemisphere and wait for a positive response. The fiat liquidity situation will likely reemerge in the third quarter.”
If the wave of liquidity comes as Hayes expects, he said his investment fund, Maelstrom, will take more risk in the cryptocurrency market, moving away from the majors and building positions in “dogsh*t,” or riskier altcoin projects. said.
He named distributed science (DeSci) as one of the areas where Maelstrom is already established and will double down on when the time comes.
“In my role as Maelstrom’s Chief Investment Officer, I will encourage the fund’s risk takers to turn their risk dial to DEGEN. The first step in that direction is our decision to emulate the burgeoning field of decentralized science shitcoins. We love underrated dog poop and bought BIO. brief history; ATH; grow up; Cy; Cryo; Neurons…
If things progress to a high level as previously explained, I’ll be cutting back on the baseline and riding a 909 open hi-hat around March. Of course anything can happen, but on balance I am optimistic.”
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