Former BitMEX CEO Arthur Hayes recently expressed optimism about the future trajectory of Bitcoin. He believes that the recent downturn in the market may have hit a local bottom and that Bitcoin is now poised for a gradual ascent in the coming months.
In a blog post on May 3, Hayes outlined several factors contributing to the market slump, including the US tax season, concerns over Federal Reserve policies, the impact of the Bitcoin halving, and a slowdown in spot Bitcoin ETF inflows. Despite these challenges, Hayes remains confident in Bitcoin’s resilience, describing the recent 12% retreat as a necessary “market cleansing.”
Hayes pointed out that Bitcoin hit a low of around $58,600 before bouncing back above $60,000. He predicts that Bitcoin will likely trade in a range between $60,000 and $70,000 until August. Hayes anticipates a gradual uptrend in the crypto markets, fueled by increased dollar liquidity due to Federal Reserve policy changes and US Treasury debt issuance.
Hayes referred to this increase in liquidity as “stealth money printing” and expects it to benefit riskier assets like cryptocurrencies. He believes that Bitcoin prices will stabilize before beginning a gradual climb upwards.
As of the latest data available, Bitcoin’s price had recovered by 4.2% to $59,804 but was still 19% below its mid-March all-time high. Despite ongoing uncertainties in the crypto market, Hayes remains cautiously optimistic about Bitcoin’s prospects for recovery in the months ahead.
Hayes also shared insights on upcoming US Treasury policy decisions led by Secretary Janet Yellen. He suggested that these decisions could have a significant impact on market liquidity and potentially spark rallies in both the crypto and stock markets. Hayes outlined three potential Treasury policy scenarios that could inject between $400 billion to $1.4 trillion into the financial system, emphasizing Yellen’s crucial role in these developments.
As the financial community awaits the Treasury’s next policy announcement, there is growing anticipation about the potential influence of these decisions on global markets.
According to the latest market data at the time of reporting on May 3, 2024, Bitcoin was up by 4.13% in the past 24 hours, trading at $59,804 with a market capitalization of $1.22 trillion and a 24-hour trading volume of $31.42 billion. The total crypto market was valued at $2.29 trillion with a 24-hour volume of $72.18 billion, and Bitcoin dominance stood at 53.07%.
