Founder of BitMEX: Powell may have pierced the banking system crisis in the United States

According to reports, Arthur Hayes, founder of BitMEX, tweeted, “Powell may have pierced the banking system crisis in the United States. In 2008, the bank’s non-performing credit portfolio — also known as the subprime crisis. In 2023, the bank’s long-term bond portfolio, such as UST and MBS? If it falls sharply, please remember that in March 2020, it fell sharply, rescued the market, and then rose sharply!? I am ready.”

Interpretation of this information:

Arthur Hayes, the founder of BitMEX, recently tweeted his interpretation and prediction of the current state of the banking system in the United States. According to his tweet, the banking system crisis was pierced by Powell, possibly referring to the Federal Reserve Chairman, Jerome Powell. In 2008, the crisis was caused by the non-performing credit portfolio, also known as the subprime crisis. Hayes seems to be predicting another crisis in 2023, but this time, it will be caused by the bank’s long-term bond portfolio, specifically UST (US Treasury Bonds) and MBS (Mortgage-Backed Securities).

He warns that if the bond portfolio falls sharply, then we should remember what happened in March 2020. The market fell sharply, but it was rescued, and then rose sharply. Hayes is likely referring to the federal stimulus package and intervention by the Federal Reserve in response to the COVID-19 pandemic, which helped to stabilize the market. The implication is that the same type of intervention may be necessary to rescue the market again in the event of a bond portfolio crash.

Hayes ends his tweet by saying that he is ready, possibly indicating his willingness to invest in the market or make other financial moves in response to the predicted crisis.

In summary, Arthur Hayes is predicting a crisis in the banking system caused by a sharp fall in the bank’s long-term bond portfolio. He warns that if this happens, the market may need to be rescued again, similar to what happened in March 2020. Hayes ends his tweet by indicating his preparedness to respond to the crisis.