DeutschJerome Powell’s words in Philadelphia on Tuesday evening (October 14) were sober, but they caused a stir in the crypto scene. The head of the US Federal Reserve indicated that monetary tightening «could end in the coming months». For the financial markets, this was a restrained signal, but for Arthur Hayes it was the starting gun. The co-founder of the BitMEX platform tweeted: «There you have it, QT is over. Back up the fucking truck and buy everything.»
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You can’t formulate a buy recommendation more clearly than that. Hayes sees the end of Quantitative Tightening (QT) as an invitation to invest in crypto assets and other risky assets. While stock market prices remained largely stable after Powell’s speech, the ex-stock trader’s posting caused a stir. On X (formerly Twitter) it was shared, commented on and ridiculed hundreds of times.
Arthur Hayes Cheers after Crypto Signal from Fed Chairman Powell
Hayes is known for his drastic forecasts – and also for his U-turns. He has announced the «very big entry» with great fanfare several times, only to row back weeks later. This has earned him cult status in parts of the crypto scene, but also plenty of criticism. «Buy recommendation from the man who has been wrong five times», quipped one user. Others took it more humorously: «If Hayes is backing up the truck, then I’d rather stay on the sidelines.»
Powell himself had no reason to exaggerate. He stressed that cutting interest rates too quickly would be risky: «If we go down too quickly, the progress in fighting inflation could be undone.» He left open exactly when the interest rate turnaround will actually come. There are still different voices within the Fed: some are pushing for rapid interest rate cuts, while others are warning of persistent price pressure.
No Major Movements after Powell’s Appearance
The fact that Hayes derives his interpretation from this is typical of the interplay between central bank policy and crypto sentiment. While Powell weighs things up, a half-sentence is enough for Hayes to make a radical tweet. This is a double-edged sword for investors. The euphoria can provide a short-term boost, as was evident in the minutes after his posting – but sustainable impetus has so far failed to materialize. Neither Bitcoin nor Ethereum recorded major movements after Powell’s appearance.
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It remains interesting how strongly individual voices can influence sentiment. Hayes may often have been wrong with his forecasts, but he knows how to set narratives. His call to «Back up the truck and buy everything» fits perfectly into a scene that is looking for any straw that promises a turnaround. Whether the truck should really be fully loaded this time is another question. One thing is certain: with three sentences, Hayes has once again managed to do what entire analyst reports often fail to do – stir up the crypto world for a moment. (mck)
