Arthur Hayes Calls for Urgent Token Launches as Market Conditions Favor Crypto Growth

Arthur Hayes, the co-founder of BitMEX, is encouraging cryptocurrency projects to seize the opportunity to launch their tokens, asserting that current market dynamics are favorable despite underlying volatility. In a compelling essay titled Volatility Supercycle, released on Wednesday, Hayes stressed the importance of acting swiftly to take advantage of the present conditions.

Hayes, who oversees the crypto investment fund Maelstrom focused on venture-stage investments, stated, “We will be urging projects that delayed their token launches due to adverse market conditions to expedite their plans.” He further advised investors, “If you are fully invested in crypto, sit back, relax, and watch your portfolio's fiat value rise. If you have extra cash, make a move into crypto.”

His bullish outlook is influenced by what he describes as the actions of “global elites” — politicians and central banks who are printing money to mitigate market fluctuations, making traditional fiat currencies less appealing. Hayes highlighted recent measures taken by central banks as pivotal factors driving the crypto market.

In the United States, for example, the Federal Reserve recently initiated interest rate cuts, beginning with a reduction of 0.5% last week. Hayes anticipates that this trend will persist until rates approach zero, a scenario he views as highly favorable for cryptocurrency. Meanwhile, the European Central Bank has also lowered rates, with further reductions expected amid mounting economic pressures. China’s announcement of stimulus initiatives, including rate cuts and lower reserve requirements for banks, adds to the signal of global monetary easing.

“All this fiat wampum must go somewhere,” Hayes remarked. “Bitcoin and crypto are the release valves. The fiat necessary to maintain suppressed volatility will inevitably flow into the crypto space.”

Q4: A Catalyst for Bitcoin Growth

Looking ahead, Hayes pointed out that the fourth quarter of the year has historically been a robust period for Bitcoin, particularly in halving years like 2024. He referenced data from Bitwise indicating that Bitcoin has typically seen average gains of 29.5% in October and 37.9% in November during similar cycles.

Given the current environment of interest rate cuts and the upcoming bullish season, Hayes believes now is an optimal moment for crypto projects to proceed with their token launches. He views the convergence of these market conditions — including central bank actions and Bitcoin’s historical performance — as a unique chance for projects to act before the end of the year.

Furthermore, Maelstrom has reinforced its commitment to the cryptocurrency ecosystem by launching a grant program in July to support Bitcoin Core developers. Hayes urges investors to consider reallocating their fiat assets into cryptocurrencies, forecasting significant growth in crypto portfolios amid the ongoing market developments.