Arthur Hayes predicts Bitcoin value is poised to rise steadily

Arthur Hayes, former CEO of BitMEX, expressed optimism regarding Bitcoin's future trajectory, saying the recent sell-off indicates a local bottom and that the flagship cryptocurrency will continue to grow. He suggested that prices were poised for a gradual rise over several months.

Hayes shared his insights in a May 3 blog post, explaining that the recent market downturn is due to concerns about the US tax season, Federal Reserve policy, the “news selling” effect after the Bitcoin halving, and the economic slowdown. This was attributed to a variety of factors. Spot Bitcoin ETF inflows.

Despite these challenges, Hayes remains confident in Bitcoin's resilience, characterizing this week's 12% drop as a “much-needed market cleanse.”

BTC range

Bitcoin hit a local low of around $58,600 earlier this week before rebounding to surpass the $60,000 level, Hayes said. He expects BTC to remain in the $60,000 to $70,000 range until August.

Hayes expects the crypto market to gradually trend upwards due to increased dollar liquidity due to the Federal Reserve's quantitative tightening (QT) taper and the US Treasury's bond issuance plans.

As Hayes explained, this “stealth money printing” is expected to inject more liquidity into the market, potentially benefiting riskier assets like cryptocurrencies.

“The slow addition of billions of dollars of liquidity each month should reduce negative price movements going forward.”

Hayes added that he believes Bitcoin prices will stabilize before starting a gradual upward trend.

At the time of reporting, Bitcoin price had recovered 4.2% and was trading at $59,804. However, the cryptocurrency remains down 19% from its all-time high in mid-March, based on data from CryptoSlate.

Although uncertainty remains in the cryptocurrency market, Hayes' outlook suggests cautious optimism, with Bitcoin expected to gradually recover in the coming months.

financial policy

Hayes recently said that upcoming U.S. Treasury policy decisions led by Secretary of State Janet Yellen could have a significant impact on market liquidity, potentially triggering a rally in both the crypto and stock markets. I predicted that there would be.

He suggested the Treasury has three potential options, each of which could inject significant liquidity into the financial system, ranging from $400 billion to $1.4 trillion. These scenarios include strategies such as zeroing out the balance in the Treasury general account, moving to short-term borrowing with Treasury bills, or a combination of both.

Although Hayes emphasized Yellen's pivotal role in this potential development and predicted a positive market reaction, analysts remain divided on the feasibility and consequences of such action. There is. As the Treasury Department's next policy announcement approaches, expectations are rising in the financial community regarding the potential impact of these decisions on global markets.