Arthur Hayes: Powell may turn hawkish again, ETH might retrace to $4000.

On August 22, during a podcast, Arthur Hayes, co-founder of a certain platform, expressed his views on Powell's interest rate policy and its impact on the crypto market. The main points are as follows:

1. I don't think Powell has to do anything. Personally, I wouldn't trade based on the assumption of "the Federal Reserve lowering interest rates by 50 basis points." If Powell insists on not lowering rates, the government will definitely find a way to "squeeze out liquidity."

2. The market could very well repeat the scenario of 2022 - having expectations for interest rate cuts, but Powell suddenly delivers a "hawkish punch," resulting in a market crash.

3. If Powell delivers a hawkish speech at Jackson Hole, ETH may first retrace to 4000 USD.

Regarding stablecoins, Arthur Hayes stated that people's imagination about stablecoins is still not big enough. U.S. Treasury Secretary Yellen will use stablecoins to reverse the trend of "de-dollarization"—that is, bringing the global offshore dollar flow back to the U.S., while also providing banking services to so-called "global south countries (i.e., developing countries mainly located in Asia, Africa, and Latin America)," even if local regulations do not allow it.