Key Points
- Arthur Hayes, BitMEX co-founder, believes Bitcoin (BTC) has hit its lowest point and foresees a gradual increase.
- Hayes’ prediction is based on the expected increase in dollar liquidity from the Federal Reserve’s quantitative tightening (QT) taper and the US Treasury’s debt issuance plans.
Arthur Hayes, the co-founder and previous CEO of BitMEX, a crypto exchange, has given his prediction on the price trend of Bitcoin (BTC).
In a recent blog post, Hayes suggested that Bitcoin may have reached its lowest point and is likely to gradually increase in the coming days.
Market Slump Predicted by Hayes
Hayes believes that the recent market downturn was not unexpected. He attributes it to various factors including the US tax season, uncertainty about Federal Reserve actions, the Bitcoin halving, and other factors that led to a 23% market correction. However, Hayes sees this as a necessary market cleansing.
Hayes is confident that a revival is imminent for the crypto markets following the recent selloffs. He suggests that this rise will be fueled by an increase in dollar liquidity from the Federal Reserve’s QT taper and the US Treasury’s debt issuance plans.
Bitcoin’s Predicted Resurgence
Hayes explains that the Federal Reserve’s QT program effectively infuses more liquidity into markets, which could theoretically increase the stimulus provided to global assets markets. This liquidity is also expected to flow into riskier assets, including cryptocurrencies, thus creating a buying pressure.
He adds that the Fed’s intended QT tapering will add billions of dollars of liquidity. According to Hayes, this liquidity will negate the negative price movement, causing crypto prices to first stabilize before slowly increasing.
Hayes is not the only one who shares this outlook on Bitcoin’s price trend. Dr. Jeff Ross, Founder and CEO of Vailshire Capital Management, suggests that contrary to the popular belief that the Bitcoin bull market has ended, the actual bull run may have not even begun yet. He shared this view in a recent post, supporting Hayes’ prediction.
At the time of writing, Bitcoin prices had shown a slight recovery, gaining 2.9% in the last 24 hours to trade at $59,279. However, the asset is still down 10% from the last month.
