Former BitMEX CEO and co-founder Arthur Hayes believes Bitcoin is at a local bottom and will slowly rise in the coming months. In a blog post from May 3, Hayes comments on recent developments in the market, with Bitcoin falling sharply and falling below $57,000.
A 12% drop was necessary for Bitcoin
Hayes believes that the 12 percent decline that Bitcoin experienced was necessary to flush the market clean of all excesses.
According to the former CEO of BitMEX, the declines were due to the tax season in the United States, concerns about the future interest rate decisions of the US Federal Reserve, the halving as a “sell-the-news” event and the slowing growth of the Spot Bitcoin ETFs.
Bitcoin’s 23 percent correction was the fourth of that magnitude in the past 12 months. In that respect, we can say that Bitcoin is still an extremely volatile animal.
Based on his analysis, Hayes expects the market to slowly rise again. Partly driven by increased liquidity in the US dollar as a result of the changed plans of the US central bank and the pace at which the Ministry of Finance wants to issue new debt.
US central bank is buoying the market?
At last Wednesday’s interest rate meeting, the US central bank announced that it will shrink its balance sheet less quickly in the coming months.
While they now shrink by 60 billion dollars every month, it is now only 30 billion dollars. According to Hayes, this effectively creates additional liquidity in the markets and that capital will theoretically flow to risk assets.
“Are the recent policy changes by the US Federal Reserve and the Treasury Department disguised forms of money printing? Yes.”
For that reason, Arthur Hayes thinks that we will slowly see green numbers again for Bitcoin and the rest of the market in the coming period. Let’s hope he’s right.
Trade €10,000 for free and get a 10 euro bonus
Do you want to enter the crypto world and perhaps buy Bitcoin or another crypto? Then grab your chance now with this exclusive offer! Thanks to a special deal between Newsbit and Bitvavo, one of the most accessible and user-friendly crypto exchanges in Europe, our readers receive an exclusive offer.
Create an account with Bitvavo via the button below and receive a welcome gift of 10 euros completely free. And that’s not all – you also don’t pay trading fees on your first 10,000 euros in transactions. Register now!
