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Arthur Hayes urges crypto market to focus more on fundamentals than hype and speculation.
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He wants real value through token buybacks and burns as well as revenue-generating models.
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Hayes predicts that Bitcoin will be worth $1M by 2028, as he believes the growing liquidity of assets such as Bitcoin.
Arthur Hayes, co-founder of BitMEX, has recently tweeted about cryptocurrency projects that lack clients or revenue. He called the current market climate a “fundamental period” in which actual financial performance is important.
Hayes made an important statement, highlighting the importance of fundamentals. He also dismissed tokens that had no clients or revenue. He also called for tangible values in the form buybacks and token burns.
Hayes’s message emphasizes his focus on cryptocurrency projects which generate real cash flow, rather than those that trade primarily on speculation. His call for token burns and buybacks, wherein projects purchase their tokens on the market and remove them permanently from circulation, highlights his preference for deflationary tokenomics backed up by actual revenue.
Treasury Department Over the Fed
Hayes’ outlook reflects an increasing emphasis on fundamentals rather than monetary policy speculation. In recent remarks, he encouraged investors to shift their focus from Federal Reserve operations to Treasury Department activities.
The real show is at Treasury Department. Ignore the Fed. Hayes said, “It doesn’t matter.” Hayes explained that “Powell did not matter in 2022, under a Democratic regime and he does not matter now, under a Republican regime.” Hayes believes that market participants are too focused on interest rates decisions, while overlooking the critical factor of dollar liquidity. His investment thesis is based on increasing money supply, rather than rate fluctuations.
Hayes has adopted this liquidation-driven investment strategy in his own plan. He revealed that his portfolio has 60-65% Bitcoin, 20% Ethereum, and the remainder in what he called “quality shitcoins”, a colloquialism to distinguish between tokens with no utility or revenue streams and those with real utility.
Bitcoin to $1 Million in 2028
Hayes is a big fan of Bitcoin, even though he criticizes tokens that have no value. He predicted that it would reach $1 million by the year 2028. Hayes attributes this prediction to America’s continued spending habits and increasing dollar liquidity. He also believes that it will drive capital towards hard assets like Bitcoin.
Hayes’ observations come at a time when the cryptocurrency market is undergoing a transformation, as investors are increasingly separating projects based on revenue generation, user acceptance, and tokenomics. The focus on fundamentals suggests a maturing market where financial performance may replace pure speculation as the driver of value.
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