Traditional Strategies No Longer Applicable In Crypto Market, BitMEX Founder Says

Assets like Bitcoin (CRYPTO: BTC) and tech stocks, including Nvidia (NASDAQ: NVDA), continue to thrive despite the Federal Reserve's aggressive rate hikes.

Bitcoin's value has surged after the FTX (CRYPTO: FTT) crypto exchange's significant downfall, and Nvidia's stock is on the rise.

BitMEX founder Arthur Hayes remarked at Korea Blockchain Week, “The traditional strategies are no longer applicable.”

Also Read: Altcoin Apocalypse: Crypto Expert Warns Of $60B Market Crash That Could Affect Dogecoin, Shiba Inu, Toncoin And Others

Hayes, who is also Chief Investment Officer at Maelstrom, believes the Fed's interest rate hikes intended to counter inflation have inadvertently influenced the larger economy.

While increased financial asset values can elevate capital gains taxes and state revenue, the Fed's actions might halt these gains, leading to reduced tax income.

"This scenario, combined with the political aversion to austerity, amplifies deficits, prompting the U.S. Treasury to release more bonds," Hayes stated.

He further explained that the subsequent interest payments to affluent individuals could boost spending and nominal GDP growth.

This creates a situation where the Fed's actions unintentionally promote economic expansion.

Hayes concluded, "Regardless of the Fed's decisions, the cryptocurrency sector remains well-positioned."

Read Next: Crypto Millionaire Whales Target These Assets - Are The Coins Ready To Soar?

Meet and engage with transformative Digital Asset and Crypto business leaders and investors at Benzinga's exclusive event - Future of Digital Assets. Tickets are flying-  get yours!