When investors face a cryptocurrency bear market, many tend to look for signals that the bottom has been reached and that a bullish revival is imminent. There are no sure signs, but Bitcoin billionaire Arthur Hayes believes BTC has hit a local bottom and will slowly grind back up in the coming months.
Arthur Hayes Calls A Bottom In Bitcoin Market
According to Arthur Hayes, Bitcoin has carved out a major price bottom.
Commenting on the recent crypto market downturn in a May 3 blog post, the BitMEX founder and former CEO Hayes suggested that “the price action played out as I expected.”
Bitcoin slumped to a local low below $57,000 on May 1 before the Federal Reserve’s meeting. Hayes observed that the 12% Bitcoin correction this week was a “well-needed market cleansing.” He attributed the retracement to the tax season in the U.S., concerns over interest rate decisions by the Federal Reserve, the Bitcoin halving sell the news event, and the deceleration of U.S. spot BTC exchange-traded fund inflows.
Nonetheless, Hayes thinks the benchmark crypto will remain in the $60K-$70K range until August. He erred slightly on the side of cautious optimism, stating:
“While I don’t expect crypto to fully realize the recent U.S. monetary announcements’ inflationary nature immediately,” he wrote, “I expect prices to bottom, chop, and begin a slow grind higher.”
Bitcoin Makes 4.6% Gain As Sellers Lose Steam
Hayes further said he will increase his exposure to various crypto assets throughout May. “And then it’s time to set it, forget it, and wait for the market to appreciate the inflationary nature of the recent US monetary policy announcements,” he continued.
Despite predicting that Bitcoin has bottomed out, the crypto OG won’t be adding to his BTC holdings.
“I certainly won’t be babysitting Bitcoin when I could be two-stepping,” he said, adding, “The recent intense puke out provides an excellent opportunity to unstake my USDe and spend synthetic dollars on high beta shitcoins. I’m buying Solana and doggie coins for momentum trading positions.”
At press time, BTC has rebounded above $61,700 for the first time since late April. The alpha crypto has gained 4.6% over the last 24 hours. Hayes expects Bitcoin to slowly grind higher, buoyed by increased dollar liquidity from the Federal Reserve’s tapering of quantitative tightening (QT) and the U.S. Treasury’s debt issuance plans. By tapering quantitative tightening, the Fed injects more liquidity into the market, which could flow into risk-on assets such as cryptocurrencies, creating massive buying pressure.
from Bitcoin Archives ⋆ ZyCrypto https://ift.tt/8c3Cs4P
via IFTTT