Loose Monetary Policy May Drive Demand for Digital Assets

Crypto markets are increasingly being framed through macroeconomic lenses again, and speakers at Cointelegraph's CONNECT by Cointelegraph: Seoul Edition during Korea Blockchain Week argued that loose monetary policy could be a meaningful driver of digital-asset demand.

Arthur Hayes, chief investment officer at Maelstrom, suggested that in the near term policymakers may have fewer options than to expand the money supply, particularly as governments juggle fiscal pressures and AI-related infrastructure ramps up spending needs.

Hayes argued that policymakers could respond to AI investment requirements and debt pressures by effectively 'printing more money,' which he believes could lift demand for scarce assets. This includes digital assets like cryptocurrencies, which have increasingly traded alongside broader liquidity expectations.