Key Points
- Bitcoin’s price has dropped to $76,100, leading to $1.4 billion in market liquidations.
- Former BitMEX CEO, Arthur Hayes, advises investors to buy the Bitcoin dips, anticipating the start of the Fed’s quantitative easing program.
In the last 24 hours, the cryptocurrency market has seen a surge in liquidations amounting to $1.4 billion. This comes as the price of Bitcoin plummeted by 8%, settling at approximately $76,100. Arthur Hayes, the ex-CEO of BitMEX, suggests that this presents an ideal opportunity for investors to purchase Bitcoin at a lower price. He also anticipates that the Federal Reserve’s quantitative easing program could commence soon.
Hayes Encourages Buying the Dip
Hayes recently communicated on the X platform about the current market volatility. He acknowledged his previous prediction of Bitcoin finding support at $76,500. However, Bitcoin has already fallen below this support level due to significant selling pressure.
Despite the current volatility, Hayes maintains that now is the right time to buy Bitcoin dips. He expressed confidence in Bitcoin’s potential for long-term growth. Hayes also highlighted the importance of the MOVE Index – a measure of US bond market volatility – as a key indicator of when the Federal Reserve may step in.
Bitcoin’s Technical Indicators and Future Predictions
Despite Hayes’ prediction of a quantitative easing and liquidity flow in the near term, Bitcoin’s movement has been contrary to his recent forecasts. Moreover, current technical indicators suggest caution. Crypto analyst Ali Martinez has identified a bearish indicator for Bitcoin’s price, known as a “death cross” formation. This is when the 50-day simple moving average (SMA) crosses below the 200-day SMA, which often precedes extended downtrends.
Mike McGlone, Bloomberg’s Senior Commodity Strategist, has questioned Bitcoin’s long-term bullish momentum. He noted that while Bitcoin’s rise from $10,000 to $100,000 once seemed inevitable due to strong trends, current market dynamics suggest a potential reversion path back towards the $10,000 level.
