BitMEX founder and crypto capitalist Arthur Hayes is confident the crypto markets will recover – it just may take some time.
In a new analysis, Hayes says he is bullish about crypto in 2023 but thinks digital assets will first plunge to new lows amid speculation about which players will be impacted by FTX’s collapse.
“Get ready for lower for longer, because it’s coming.”
According to Hayes, the absence of an entity that would stop the bleeding like a central bank is a huge positive for the industry as it will allow the crypto markets to effectively reset and eventually recover.
“But the good thing about crypto is that no central bank will be riding the rescue with freshly printed fiat shitcoins to bolster the balance sheets of reckless companies. The crypto industry will be forced to devour its humble pie quickly – leading to a speedy recovery that leaves it stronger than ever.”
The former BitMEX CEO also highlights that centralized exchanges will always deal with customer trust issues.
“FTX was not the first high-profile exchange to fail and it won’t be the last. But throughout all this, blocks on the Bitcoin, Ethereum, and all other blockchains were still produced and verified. Decentralized money and finance have and will continue to survive and thrive in the face of the failures of centralized entities.”
Hayes compares the current crypto controversy to the stock market crash in 2008.
“FTX and Alameda biting the dust is bad enough. That is our Lehman Brothers – but who is AIG? Who is CountryWide? FannieMae and FreddieMac anyone? Oh, they are out there – hiding in plain sight.”
Hayes is not without his own controversy. Back in March, the former BitMEX CEO and fellow executive Benjamin Delo pleaded guilty to violating the Bank Secrecy Act by willfully failing to establish anti-money laundering protocols. A judge later sentenced Hayes to six months of home detention and two years of probation, and the former CEO also agreed to pay a fine of $10 million.
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