Arthur Hayes, the co-founder and former CEO of BitMEX, lately shared his ideas on the current Bitcoin price action. He said that the flagship crypto has hit a neighborhood low and predicted what its future trajectory will appear like.
Hayes Says Bitcoin Has Bottomed
In a latest weblog publish, Hayes mentioned that Bitcoin hit a neighborhood low when it dropped to around $58,600 earlier this week. As such, he doesn’t foresee the flagship crypto dropping under that value vary once more anytime quickly.
Instead, he predicts that Bitcoin will rally above $60,000 (which it already did) and “then range-bound price action between $60,000 and $70,000 until August.”
Hayes additionally recommended that Bitcoin’s latest decline was as a result of a number of components, together with the Fed fee choice, the Bitcoin halving sell-the-news occasion, and the slowdown within the demand for US Spot Bitcoin ETFs.
He additionally used the chance to the touch on the latest Fed and Treasury coverage bulletins, which he believes will considerably impression crypto.
Hayes claimed these bulletins meant the federal government would possible resort to money printing quickly sufficient. He believes the potential injection of liquidity into the US financial system will “dampen negative price movement” within the crypto market. As such, he expects that costs will “bottom, chop, and begin a slow grind higher.”
Hayes’ projections are just like crypto professional Michaël van de Poppe, who recently predicted that Bitcoin will possible consolidate for a couple of months. Interestingly, Van de Poppe additionally alluded to the Fed’s latest insurance policies, noting {that a} Quantitative Easing is shut, which might be bullish for Bitcoin.
However, Hayes sounded apprehensive of the long-term results of the latest financial bulletins, noting that they’d an inflationary nature.
Therefore, though extra money is anticipated to circulate into the crypto market with the Fed’s choice, it might trigger inflation to skyrocket. This would finally result in increased rates of interest, negatively affecting danger property like Bitcoin.
Bitcoin is now buying and selling at $63.160. Chart: TradingView
Arthur Hayes’ Trading Strategy Going Forward
The MEXC co-founder mentioned he would purchase Solana and “doggie coins for momentum trading positions.” For long-term “shitcoin positions,” he talked about that he would improve his allocations in Pendle whereas figuring out different tokens that he considers undervalued. Basically, he plans to make use of this month to extend his publicity.
Once he had accomplished that, he remarked that he would watch for the market to “appreciate the inflationary nature of the recent US monetary policy announcements.”
Meanwhile, as to what doggie cash Hayes may be accumulating, Dogwifhat (WIF) is probably going certainly one of them, contemplating he as soon as mentioned that he would load up on WIF as Bitcoin bottoms out.
Featured picture from Pexels, chart from TradingView
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