Crypto veteran and BitMEX founder Arthur Hayes believes that the crypto bull market is about to enter the juiciest part of the cycle.
In a new interview with Kyle Chasse, Hayes says that crypto is gearing up to transition to the middle of the cycle, when the “real meat” of the bull market unfolds.
Hayes says that President Trump will send the crypto market flying with monetary policies designed to unlock liquidity from multiple sources. According to the crypto veteran, Trump has a history of giving Americans free money to secure popular support, noting that he doesn’t think the president will change tactics now.
“He’s going to provide more free sh*t. Otherwise, him and his Trumpian Republicans are going to get voted out of office in 2026 and then in 2028, in the presidential election.
So I think he knows exactly what he needs to do, which is provide free sh*t and print money. And that’s what he’s going to do.
And now, obviously, the Fed and certain individuals within sort of the bureaucracy that is the American government have been sort of stymying his efforts. But, domino after domino is being knocked down. And by the middle of next year, it’s going to be full steam ahead in terms of the Fed’s on board. No more Powell. Maybe he’s got four out of seven Fed governors, and he can do some other funky things with the interest on reserves or the discount window.
And you have Bessent doing these sovereign wealth fund deals. You have possibly Fannie and Freddie ending conservatorship, and now they can lever their balance sheets and add about $4 to $5 trillion into the mortgage markets, allowing people to re-leverage on their houses.
So yes, if the consumer runs out of cash, what does the American consumer do when they don’t have money? They borrow it…
You can say the American consumer is tapped out. The housing market’s a bit overbought. Well, if I cut rates from four and a half to two, well, then you’re going to take more leverage and buy more stocks, and max out that credit card, and buy a new car, and take out a home equity loan.
So I think that’s a very short-sighted sort of explanation if you sort of believe that the Fed’s going to start cutting rates and Trump is going to unlock all this liquidity on Fed balance sheets, the mortgage market.”