Former BitMEX CEO Arthur Hayes anticipates that Bitcoin has reached a local bottom and will gradually climb back up over the coming months.
Hayes, in a blog post dated May 3, expressed his views on the recent market downturn, stating that the price action aligned with his expectations.
Bitcoin experienced a dip to approximately $58,600 earlier in the week but is forecasted to rally above $60,000 and then maintain a range between $60,000 and $70,000 until August, according to Hayes.
Hayes described the recent 12% retreat in Bitcoin price as a necessary market cleansing, attributing it to factors such as the U.S. tax season, concerns over Federal Reserve decisions, the Bitcoin halving “sell the news event,” and a slowdown in spot Bitcoin exchange-traded fund inflows.
Despite the correction, Hayes expects cryptocurrency markets to gradually trend higher, driven by increased dollar liquidity resulting from the Federal Reserve’s quantitative tightening (QT) taper and the U.S. Treasury’s debt issuance plans.
Hayes views the Fed’s QT tapering as a form of “stealth money printing,” which he believes will positively impact high-risk assets by injecting more liquidity into markets.
Other industry figures share similar sentiments regarding Bitcoin’s sideways movement in the coming months. Jeff Ross of Vailshire Capital Management believes the ongoing market conditions still favor a bullish trend, despite some negative sentiment.
Institutional crypto brokerage MatrixPort supports the notion that Bitcoin tends to move sideways for several months post-halving based on historical patterns.
Bitcoin prices saw a 4.2% recovery to $59,804 at the time of writing, though still down 19% from the mid-March all-time high, according to CoinGecko.
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