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Arthur Hayes Says Bitcoin Bottom Is In, Predicts Slow but Steady Climb Back Up
Co-founder and former CEO of BitMEX crypto exchange Arthur Hayes has shared his thoughts on the price action of Bitcoin (BTC). Hayes, who is an industry expert, revealed in a Friday blog post that the crypto may just have bottomed in and is expected to slowly climb back up over the next few days.
According to Hayes, the recent market slump was nothing short of expectation. That is as conditions, including the US tax season, uncertainty over Fed actions, the “sell the news event” of Bitcoin halving, and other things contributed to the price action that brought over 23% correction to the market. To Hayes, however, all that happened was merely a “well-needed market cleansing”.
Steady Rise Up Next for Bitcoin, Says Arthur Hayes
The former BitMEX chief believes that a resurgence is now in order for the crypto markets after the just-concluded selloffs. He claims that the rise will be driven by increased dollar liquidity from the Federal Reserve’s quantitative tightening (QT) taper and the US Treasury’s debt issuance plans.
Hayes says that the QT program by the Fed effectively injects more liquidity into markets, which could theoretically increase the amount of stimulus provided to the global assets markets. Consequently, this liquidity is also expected to make its way into riskier assets, including cryptocurrencies, hence creating a buying pressure. An excerpt from the post reads:
“By reducing the rate of QT from $95 billion to $60 billion per month, the Fed is essentially adding $35 billion per month of dollar liquidity.”
For all the different amounts that the Fed intends to taper QT with on a monthly basis, expectations are that the move will, in turn, add billions of dollars of liquidity. Hayes says that means that from here on out, the liquidity will ultimately cancel out the negative price movement as crypto prices first flatten out before grinding higher, albeit slowly.
Similar Views
Meanwhile, it might be worth noting that Hayes is not alone with his views on BTC price movement. Founder and CEO of Vailshire Capital Management, Dr. Jeff Ross believes that analysts would be surprised to find out that, contrary to popular belief that the Bitcoin bull market has ended, the actual bull run may not have even started yet. He shared the opinion via a May 2 X post, further buttressing Hayes’ claims.
Interestingly, Bitcoin prices had posted a slight recovery on the day. As of publication, Coinspeaker data shows Bitcoin gaining 2.9% in the last 24 hours to be trading at $59,279. However, the asset is still down 10% from the last month.next
Arthur Hayes Says Bitcoin Bottom Is In, Predicts Slow but Steady Climb Back Up
Source: https://www.coinspeaker.com/arthur-hayes-bitcoin-bottom/