BitMEX Co-founder Predicts Bitcoin’s Rise Despite Recent Downturn

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Arthur Hayes, the esteemed co-founder and previous CEO of BitMEX, unraveled his seasoned predictions regarding the ongoing trajectory of Bitcoin, the leading digital currency.

In an informal discussion through his recent blog post, Hayes shed light on Bitcoin’s recent dip to a rough patch of around $58,600, this week. Despite what skeptics may believe, Hayes expressed an unswerving confidence that the preeminent digital currency would not plummet beneath this threshold anytime soon, at least not in the foreseeable future.

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Projecting an optimistic outlook towards the much-speculated volatility of Bitcoin, Hayes argues that the flagship cryptocurrency is paving a path towards the northern altitude of $60,000. In fact, Bitcoin has already punctured this ceiling and that too in not so distant past. From this point onwards, he anticipates a hovering motion between the $60,000 and $70,000 mark, a trend that he foresees to continue lingering until mid-Summer in August.

Delving into the depths of the recent Bitcoin downfall, Hayes listed several contributing reasons. An integral one being the recent decision on the Federal rate. Additionally, the shrinkage in the demand for US Spot Bitcoin ETFs and the Bitcoin halving ‘sell-the-news’ event did some noticeable damage as well.

Hayes then proceeded to share his insights on the recent announcements surrounding monetary policy from the Federal Reserve and the Treasury, viewing them as potential game-changers for the cryptosphere.

In Hayes’s belief, the recent official statements are signals that the national government will soon reopen the monetary floodgates through money printing. Further, he projected that the possible gush of liquidity unleashed into the American economic sphere would buffer any harsh negative price swings in the cryptocurrency domain. Consequently, he envisions the forthcoming market movement in a pattern of “bottom, chop and then slow bullish grind.”

In sync with the projections of crypto expert Michaël van de Poppe, Hayes highlights a period of consolidation for Bitcoin, postulating that it may continue for a few months. Hayes also echoed Van de Poppe’s inference about the proximity of Quantitative Easing, viewing it as a bullish factor for Bitcoin.

Nonetheless, Hayes did exhibit some reservations regarding the long-term ramifications of the recent monetary pronouncements given their intrinsic inflationary potential. Therefore, while the infusion of more money into the crypto market due to the Federal decisions might initially seem appealing, it also holds the potential to inflate the economy explosively. This could trigger a consequential rise in interest rates, an effect that could potentially unhinge risk assets like Bitcoin.

Currently, Bitcoin holds its fort at a trading value of $63.160, according to the latest update from TradingView.

Bearing a strategic vision into the future, Hayes elucidated his trading tactics. He intends to bolster his digital portfolio with Solana and popular ‘doggie coins’ for establishing momentum trading positions. For long-standing ‘shitcoin’ positions, Hayes plans to substantially bump up his stakes in Pendle while keeping an eye out for potentially undervalued tokens. Essentially, the plan of action for the month is to widen his crypto exposure.

Having topped up his portfolio, Hayes would then strategically pause and watchfully observe. He intends to witness the market’s response to the inflation-inciting elements initiated by recent US monetary policy announcements.

While it’s unclear as to exactly which ‘doggie coins’ Captured Hayes’s fascination, Dogwifhat (WIF) emerges as a compelling contender. Especially considering Hayes’s previous mention of filling his coffers with WIF as Bitcoin navigates the murky depths of the bottom.