Bitcoin Hits Local Low; Ex-BitMEX CEO Hayes Predicts Slow Upward Trend
Summary:
Arthur Hayes, ex-CEO of BitMEX, predicts that Bitcoin has reached a local bottom and will witness a slow progression upwards over the next few months. The recent 12% Bitcoin slump, which Hayes considers a necessary market purge, is attributed to US tax season and uncertainty over Federal Reserve rulings, among other factors. He foresees growth in crypto markets driven by increased dollar liquidity from the Federal Reserve and the US Treasury's financial plans. Other market predictions resonate with Hayes's view, with Dr. Jeff Ross of Vailshire Capital Management suggesting the actual Bitcoin bull market hasn't started yet.
Arthur Hayes, ex-CEO of BitMEX, predicts Bitcoin (BTC) has reached its momentary low and anticipates a slow upward progression in the coming months. On his May 3 blog post, Hayes reflected on the recent market downturn, stating it unfolded as he projected. Bitcoin plummeted to a local minimum of approximately $58,600 this week but is expected to surge above $60,000 and settle between $60,000 and $70,000 until August, according to Hayes. He attributed this week's 12% Bitcoin slump, which he perceives as a necessary market purging, to US tax season, anxiety over Federal Reserve rulings, Bitcoin halving's "sell the news event", and a deceleration in spot Bitcoin ETF asset growth. Hayes reveals that this 23% correction is the latest of four comparable loss margins over the previous 12 months.
Hayes predicts a slow upward motion in the crypto markets post-sell-off, driven by the rising dollar liquidity resulting from the Federal Reserve's quantitative easing (QE) taper and the US Treasury's debt issuing schemes. By reducing QE, the central bank virtually pumps more liquidity into the market. This might theoretically flow into riskier investments like cryptocurrencies, creating buying pressure. Hayes perceives this as a form of covert money production that could benefit high-risk assets.
He strongly asserts that the ongoing Fed and Treasury policy declarations are subtle versions of money printing: "Are the recent Fed and Treasury policy announcements stealth forms of money printing? Yes." Hayes further adds, "The slow addition of billions of dollars of liquidity each month will dampen negative price movement from here on out," suggesting that prices will "bottom, chop, and begin a slow grind higher."
Vailshire Capital Management's Founder and CEO, Dr. Jeff Ross, also projects a sideways market for the forthcoming months. Despite the negative market vibes, he conveys respect for the prevailing bullcrab market after the Fed's "rhetoric pivot," signifying the switch from poor to less awful liquidity conditions. Analysts and traders proclaiming an end to the Bitcoin bull market "may be dismayed to learn that the actual bull market hasn’t even started yet," stated Ross, implying upcoming weeks present a chance for accumulation.
An outlook shared with Cointelegraph by institutional crypto brokerage MatrixPort emphasized that, typically, Bitcoin stays flat for about four to five months after halving.
Bitcoin prices have seen a 4.2% recovery since the downturn, presently trading at $59,804. However, the asset remains 19% weaker from the all-time high in mid-March, citing CoinGecko. Related news includes the launch of a Bitcoin ETF in Hong Kong, ranked in the 'top 20%', and the arrest of a STRK scam suspect as reported by the Asia Express journal.
Published At
5/3/2024 8:07:22 AM
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