ChainCatcher News: Different Views on Interest Rate Cuts Impacting Crypto Market

ByBit Institutional Head Chris Aruliah holds a nuanced perspective on the impact of interest rate cuts on the crypto market. In an email statement, Aruliah stated, "The global economic slowdown driven by weakening economic indicators and geopolitical complexities is dampening investor sentiment. Therefore, while a 0.5% reduction in the Federal Reserve's policy rate may provide a short-term boost to the crypto market, it is crucial to remain vigilant about the potential challenges posed by economic uncertainty and market volatility."

BitMEX Co-founder Arthur Hayes, in an interview, expressed a different viewpoint, arguing that the overall rate cut is unnecessary. Hayes believes that a 50 basis point cut would trigger a short-lived market rebound, ultimately exposing deeper problems within the global financial system, leading to further price declines.

He stated, "At a high level, I don't think they should be raising rates. I believe the US economy is quite strong. If you look at the GDP data over the last eight or nine quarters, you'll see it's been consistently growing. If they decide to continue cutting rates, inflation will accelerate into the fourth quarter."