BitMEX founder calls correlation between bitcoin and Fed rate weakening

Crypto expert Hayes: correlation between bitcoin and the Fed Funds rate is weakening

Regardless of the Fed Funds rate, the cryptocurrency market is in a good position, says the ex-head of crypto exchange BitMEX

BitMEX crypto exchange founder and Maelstrom IT director Arthur Hayes believes that the correlation between the Federal Reserve (Fed) interest rate and the bitcoin (BTC) exchange rate is gradually weakening, Coindesk reported, citing the expert's statement during Blockchain Week in Korea.

"This is different from what has happened before. We are seeing the standard scenario collapsing," he said.

The expert also noted that the Fed's actions to raise interest rates to fight inflation have had unintended consequences for the economy as a whole. Rising financial asset prices can lead to higher taxes on capital gains and government revenues, but when the agency raises interest rates, prices can stagnate, reducing tax revenues, the expert said.

At the same time, regardless of the Fed's course, the cryptocurrency market is in a good position, Hayes said.

Earlier Arthur Hayes suggested that bitcoin could become a currency for AI systems. If artificial intelligence uses BTC, the value of the Bitcoin network will grow significantly, believes the former head of BitMEX.