Arthur Hayes: The acceleration of currency printing is imminent, investors should boldly increase their holdings in crypto assets

Arthur Hayes stated that the current crypto bull market is just beginning, and investors should boldly take a left curve, holding and increasing their positions.

Hayes pointed out that 2024 is a crucial year when several major countries will hold presidential elections. Especially in the United States, the incumbent Democratic Party will spare no effort to be re-elected in order to reverse Republican policies. In an election year, if people feel that the economy is in recession, the probability of the incumbent president being re-elected will drop from 67% to 33%. Therefore, for ruling parties controlling monetary and fiscal policies, the simplest method is to significantly increase government spending, boost nominal GDP growth rate and create an illusion of non-recession.

Data shows that U.S. government expenditure now accounts for 23% of nominal GDP; meaning as long as the government is willing to borrow money, it can manipulate nominal GDP at will. According to predictions from Congressional Budget Office (CBO), regardless whether Biden or Trump takes office next time around , future U.S. government fiscal deficits are set to continue expanding. Additionally geopolitical conflicts surrounding America are escalating with politicians happy continuing providing billions of dollars aid support allies.

Hayes emphasized that as long as governments can borrow at rates lower than nominal GDP growth rates they'll keep increasing expenditures . Henceforth , scale of currency printing would only get more exaggerated . He advises investors fully utilize recent cryptocurrency price pullbacks opportunity slowly build up their portfolios . As Northern Hemisphere summer approaches , volatility within crypto markets also expected decrease which presents excellent entry point timing especially for non-presale round investors . Unless real interest rates turn positive all investors should remain optimistic let winners keep running wild.