The Breakdown Hayes: "Time to Long Everything!"
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May 3, 2025 Arthur Hayes boldly advocates for a 'long everything' strategy, predicting a liquidity wave that could energize markets. Insights from industry giants like CZ highlight the evolving crypto landscape, merging utility with AI influence. Despite concerns over shrinking GDP and looming recession risks, there’s optimism about Bitcoin's potential with anticipated Fed interest rate cuts. Innovations in cryptocurrency security and exciting developments in stablecoins also promise a dynamic future for digital currencies.
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Arthur Hayes: Time to Long Everything
- Arthur Hayes believes it's time to "long everything" due to an impending liquidity wave that could supercharge markets.
- He compares current conditions to Q3 2022 when Fed liquidity helped put a bottom on crypto and predicts Bitcoin could reach $1 million by 2028.
Recession Triggers Deficit Expansion
- A potential recession with negative GDP makes deficit expansion automatic as support programs increase and tax revenues fall.
- Hayes sees expanded Treasury issuance and Fed liquidity supports ahead, which act as various forms of money printing.
Q1 GDP Decline May Be Import Noise
- The U.S. GDP contracted by 0.3% in Q1, the first negative growth since Q1 2022, raising recession fears.
- However, the contraction may be due to import stockpiling ahead of tariffs, as real final sales grew 3%, indicating underlying demand.