Arthur Hayes, BitMEX founder, shares his top 4 cryptos for the bear market
Arthur Hayes, co-founder of BitMEX, published a blog post about the current crypto market situation, Bitcoin’s price and the FTX fiasco. He also discusses lending firms and his top four crypto picks in this volatile bear market.
Arthur’s Top Four
Arthur says that in bear markets serious investors should hold onto assets that not only increase in value when the market turns green but also yield yield as token holders.
Learn More: Bitcoin Price Crash Arthur Hayes makes bold price prediction
He chooses four of his favorite cryptos, which he then categorizes into two sections: Reserve Assets & Super-Powered Assets. He selects Bitcoin as the top cryptocurrency by market cap, with Ethereum following. LOOKS, GMX and GMX are the other cryptocurrencies that make it to this Super Powered Assets.
Key is Yield Generation
Arthur stresses that, while Bitcoin and Ethereum can help him in capital appreciation if the bull market takes control, it is his tokens like these that would generate him yield — something neither of the two coins currently does.
Happy days if there are protocols that cost less than Bitcoin and Ether, where I get the return profile plus the yield from actual usage.
Lucrative DeFi Projects
He also stated that many of the DeFi projects were “shellacked” during the two downturn waves of the 2022 crypto-credit crunch, which allowed for a lower valuation and a lower price to enter such projects.
Read More: Arthur Hayes Declares BitMEX Funds “SAFU”, Due to This New Feature
Arthur justifies his reasoning by saying,
I should only invest in projects that have a P/F ratio less than 5x. This yield is 20% per year. Everybody will have a different hurdle rate but mine. I could buy Bitcoin or Ether, but neither one of these cryptos gives me enough yield.
Arthur also highlighted the fact that Bitcoin’s price “might” have bottomed at $15,900. It’s times such as these that make investing seem risky but rewarding.
About the author
The content presented may contain the author’s personal opinion and is subject to market conditions. Before investing in cryptocurrency, do your market research. The publication or the author are not responsible for any financial loss.