Former BitMEX CEO Arthur Hayes claims that the bitcoin price has bottomed out on the chart and is ready to continue climbing.
Bitcoin price will increase
In a May 3 blog post, Hayes commented on the recent declines in the chart. In his opinion, “the price action was as expected.”
Bitcoin's price has fallen to around $56,500 this week. Now it's trying to break $60,000 again.
According to the businessman, the price drop was “very necessary to clear the market.”
But why did the price drop? Was it just a natural market reaction to previous strong increases? Hayes blamed the Fed for this. Yes, he indicated that investors are no longer so confident about what the Federal Reserve will do in the coming months. And in fact, it is unlikely to start cutting interest rates. in the USA already in June This was probably influenced by the latest inflation data. Discounts may not start until September.
However, the market was to respond with declines not only to the Fed's policy. This happened… halving in the Bitcoin network. The “buy rumors, sell facts” phenomenon has occurred. We also saw some stagnation in the level of ETF purchases. This is a derivative of the uncertainty that also prevails on the traditional stock market.
Growth is ahead of us
Hayes expects that the cryptocurrency market will now grow. It is expected to be driven by increased liquidity in the dollar market, which will result from the Fed scaling back its quantitative tightening policy. The former BitMEX boss sees this as “secret money printing,” which is a positive for high-risk assets. And the market still considers cryptocurrencies as such.
Slowly adding billions of dollars of liquidity every month will dampen negative price movements from now on
– he said.
Today, one bitcoin costs approximately USD 59,500. This means a 7.7% decline in the BTC price for the week and an increase of 3.5% since yesterday. Ether increased to USD 2,992, i.e. by 2.7% in 24 hours. However, in 7 days, investors are still losing 5%.
