Arthur Hayes Warns of Crypto Bear Market as UST/USD Plunges
CryptoNewsTerminal Staff10 Sep, 2024
Arthur Hayes Warns of Crypto Bear Market as UST/USD Plunges
In a recent update, BitMEX co-founder Arthur Hayes expressed concerns about the potential impact of a sharp decline in the UST/USD exchange rate on the cryptocurrency market. Hayes highlighted that if the UST/USD pair continues to fall and reaches the 140 yen level, it could potentially signal the onset of another "goblin town" (bear market) for the crypto market. He emphasized the need to monitor the situation closely to determine if BTC can withstand the downward pressure. Hayes' concerns stem from the fact that the UST/USD pair is a key indicator of the relative strength of the US dollar against the Japanese yen. A sharp decline in the UST/USD rate would indicate a rise in the value of the US dollar, which could put pressure on the crypto market. This is because many cryptocurrencies are priced in US dollars, and a stronger US dollar would make them more expensive for investors holding other currencies. As a result, a sharp decline in the UST/USD rate could lead to a sell-off in the crypto market as investors look to take profits or protect their assets.
