Arthur Hayes, co-founder of BitMEX, believes that institutions can no longer ignore Dogecoin due to its immense popularity. He predicts that after Bitcoin and Ethereum ETFs hit the US public markets, regulators will inevitably approve a Dogecoin ETF as well.
In a recent interview with Real Vision CEO Raoul Pal, Hayes discussed their favorite meme coins and other crypto picks for this cycle. They also highlighted the key risks facing the industry.
Dogecoin Potential Amid Market Conditions
Hayes stated that meme coins like Dogecoin have significant potential this cycle, driven by increased money printing by the Federal Reserve and the US Treasury. “For new crypto investors, Dogecoin is the easiest to understand,” he said, noting its straightforward appeal.
In a blog post, Hayes recommended going long on Bitcoin and “shitcoins” following interest rate cuts by the Bank of Canada and the European Central Bank. Historically, low interest rates benefit stocks and Bitcoin, which in turn boosts the volatile meme coin market.
Dog-Themed Coins in Their Portfolios
Both Hayes and Pal have invested in dog-themed coins, including Dogecoin (DOGE), BONK, and dogwifhat (WIF). They believe Dogecoin will secure ETF approval in the US by the end of the current bull market cycle. “It’s the oldest memecoin and it’s on Robinhood,” Hayes said, emphasizing its high market cap.
Dogecoin has surged 136% over the past year, and since its launch in December, WIF has skyrocketed by nearly 1600%.
Cryptos to Avoid
Both investors advised against investing in Cardano, labeling it as a “narrative of the last cycle.” Pal also criticized Ripple (XRP).
Hayes and Pal expressed concerns about centralized entities dominating the crypto market. Pal is worried about Derebit’s 90% market share in the options market, while Hayes pointed to Coinbase and banks holding Bitcoin for large ETFs as potential risks. Hayes warned, “If I’m gonna hack crypto, I’m going after one of these US custodians. They can’t call up the Treasury or the Fed for a bailout if they lose it.”
With these insights, both Hayes and Pal emphasize the evolving landscape of the crypto market, driven by regulatory changes, market dynamics, and emerging risks.
