Arthur Hayes, the BitMEX co-founder, has recently shared his opinion on the likely impact of the approaching U.S. election on the crypto sector and the future of Solana. In a podcast on a prominent YouTube channel Unchained, he voiced his backing for Solana labeling it as “high beta Bitcoin.”

Arthur Hayes Recommends Solana Based on Its High-Reward and High-Risk Profile

Hayes mentioned that Solana provides a high-reward and high-risk profile and expressed his confidence in it. He assimilated its behavior to a high-beta asset. It is a financial term that denotes the securities that are more volatile in comparison with the overall market. With this quality, Solana becomes a preference for investors who pursue increased risk in return for huge profits, particularly in comparison with a more steady profile of Bitcoin.

Concerning the upcoming election, the BitMEX co-founder said that the event will have very little impact on cryptocurrency regulations. Thus, whoever wins among the contestants would not influence this sphere. He pointed toward the Fed’s monetary policy, categorizing it as a chief factor regarding the crypto prices.

In addition to this, the response from the central bank to inflation spikes has resulted in enormous rate jumps. Hayes mentioned that this may lead to another such inflation pressure in November. He asserted that the Fed’s decisions would directly influence the liquidity and investor sentiment for Bitcoin, Solana, and other riskier assets.

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Hayes additionally commented on the crypto markets’ overall nature while investors are exercising caution due to macroeconomics. The current scrutiny that the regulatory agencies including the U.S. SEC are conducting has already threatened the crypto community. Hence, the crypto entities are reluctant to carry out their operations freely. In this respect, he expressed doubts regarding the likely outcomes of the election on the respective dynamic.

BitMEX Co-Founder Suggests a Careful Approach for Crypto Investment

While the crypto market is cautious ahead of the upcoming decision from the Fed, Hayes suggests a careful approach in the case of crypto investment. He advises investors to move toward assets with more liquidity like Bitcoin to remain safe during a sentiment shift. Nevertheless, while addressing the investors moving toward higher profits, Hayes recommends Solana as a compelling opportunity.