Arthur Hayes: The Fed's 50 basis point rate cut will trigger a short-term market rebound, but will ultimately expose deeper problems in the global financial system

Odaily News Chris Aruliah, director of ByBit Institutional, has a different view on the impact of rate cuts on the crypto market. "The general slowdown in the global economy caused by weaker economic indicators and geopolitical complexities is weakening investor sentiment," Aruliah wrote in an emailed statement. "Therefore, while the Fed's 0.5% cut in policy rates may boost cryptocurrency markets in the short term, it is critical to remain vigilant to the potential challenges posed by economic uncertainty and market volatility." Arthur Hayes, co-founder of BitMEX, pointed out in an interview that he believes that an overall rate cut is unnecessary, and a 50 basis point rate cut will trigger a short-term market rebound, but will ultimately expose deeper problems in the global financial system, leading to further price declines. He said: "At a high level, I don't think they should raise interest rates. I believe the U.S. economy is quite strong. If you look at the GDP data for the past eight or nine quarters, you will find that it has been growing continuously. If they decide to continue to cut interest rates, inflation will accelerate into the fourth quarter." (CoinDesk)