Arthur Hayes Says Bull Market Begins in Anxiety, With Money Supply Expansion Set to Lift Crypto Prices
Summary
- Arthur Hayes said he remains bullish on the digital-asset market despite AI-related threats to cryptography.
- He said future money supply expansion will lift prices, and that markets must climb a wall of worry at the start of a major bull market.
- Hayes said, "Money will be printed, and the prices of digital assets investors hold will rise," underscoring his view that liquidity inflows will drive the next advance.
Forecast Trend Report by Period
Arthur Hayes, CEO of Flop Labs and chief investment officer at Maelstrom, said he remains bullish on the digital-asset market despite concerns that artificial intelligence could threaten cryptography.
On October 8, Hayes said markets had risen through past crises and that future money supply expansion would lift prices. At the start of a major bull market, he said, markets have to climb a wall of worry.
His point was that fears spreading through the market should not be viewed only as a threat to the bullish outlook.
Hayes cited events that weighed on investor sentiment at different times. In 2017, he pointed to the debate over Bitcoin's block size. In 2020, he cited the spread of Covid-19. In 2023, he highlighted the fallout from the FTX collapse and policy rate hikes by central banks around the world.
This year, he placed anxiety over AI-related threats to cryptography in the same context. He described it as FUD, a term that stands for fear, uncertainty and doubt.
"Money will be printed, and the prices of the digital assets you hold will rise," Hayes said, emphasizing his view that liquidity inflows driven by money supply expansion, rather than concerns over the technology itself, will power the next advance.
