Cryptocurrencies

Bitcoin Bottom, Now Heading to a “Slow Rise” – Arthur Hayes

Bitcoin Bottom, Now Heading to a “Slow Rise” – Arthur Hayes BitMEX CEO Arthur Hayes believes that Bitcoin (BTC) has hit a local bottom and will slowly rise back over the next few months.

Bitcoin Bottom, Now Heading To A “Slow Rise” – Arthur Hayes

In a blog post dated May 3, Hayes commented on the recent market decline claiming that “price action went as I expected.”

Bitcoin hit a local low of about $58,600 earlier this week, but will rise to more than $60,000 and then remain in a range of $60,000 to $70,000 through August, he said.

Hayes added that Bitcoin’s 12% decline this week was a “much-needed market cleanse.”

He blamed US tax season, concerns about Federal Reserve decisions, the Bitcoin halving “news event,” and spot Bitcoin ETF assets slowing down as management grows.

The 23% correction was the fourth such correction of the same size in the past 12 months.

Hayes expects cryptocurrency markets to slowly rise after the recent sell-off, driven by increased dollar liquidity from the Federal Reserve’s quantitative tightening (QT) and the US Treasury’s debt issuance plans.

By gradually lowering the QT, the central bank is effectively injecting more liquidity into the markets which could theoretically make its way into riskier assets such as cryptocurrencies, providing buying pressure.

Hayes sees this as “hidden money printing” which is positive for risk assets.

“Are recent Fed and Treasury policy announcements covert forms of money printing? Yes.”

“The slow addition of billions of dollars of liquidity each month will mitigate negative price movement from now on,” he added, before predicting that prices would “bottom out, fall, and start a slow rise.”

The former BitMEX boss is not the only one who expects a sideways market to occur over the next few months.

Founder and CEO of Vailshire Capital Management, Dr. Jeff Ross,  said  he was “still respectful of the ongoing bull market,” despite the pessimism and gloom in a post for X on May 2.

He believed that the “axis of the rhetoric” adopted by the Fed was the official shift from “bad liquidity conditions to less bad.”

Analysts and traders calling for the end of the Bitcoin bull market “may be dismayed to learn that the actual bull market has not yet begun,” he said, before concluding that the coming weeks will be an opportunity for accumulation.

Bitcoin Bottom, Now Heading to a “Slow Rise” – Arthur Hayes

In a note shared with Cointelegraph, institutional cryptocurrency brokerage Matrix Port confirmed its prediction that after the halving, “Bitcoin will then tend to move sideways for four to five months based on historical conditions.”

Bitcoin prices have recovered 4.2% on the day to trade at $59,804 at the time of writing, however, the asset is still down 19% from its all-time high in mid-March, according to CoinGecko.

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