Hayes: ETH May Retest $4K; Stablecoins to Reverse De-Dollarization
Former BitMEX CEO Arthur Hayes said Federal Reserve policy will drive crypto markets. Speaking on Crypto Banter, he warned that Powell’s hawkish Jackson Hole speech could force an ETH retest $4K. A policy surprise may echo the 2022 cycle, prompting rapid repricing and volatility. Hayes said a strong hawkish stance might trigger an ETH retest $4K technical level in the short term.
He also highlighted the underappreciated policy role of stablecoins. Hayes argued that Treasury Secretary Janet Yellen could deploy stablecoins to counter de-dollarization, restoring offshore dollar flows and extending banking services in the Global South under existing regulations. Traders should monitor Fed communications and stablecoin policy shifts closely. A potential ETH retest $4K presents short-term trading setups, while stablecoin developments could reshape offshore liquidity and dollar demand.
Neutral
This news delivers mixed signals, making the overall impact neutral. A hawkish Fed speech could compress risk assets and spark volatility, yet Arthur Hayes’s call for an ETH retest $4K suggests upside potential if markets reprice. At the same time, stablecoins’ policy role in countering de-dollarization may support offshore dollar liquidity and ease selling pressure. Historical Fed tightening cycles often trigger initial sell-offs followed by liquidity-driven recoveries. Traders should prepare for short-term volatility around policy announcements and watch stablecoin developments for longer-term offshore demand influences.