In a recent blog post, Arthur Hayes, co-founder and former CEO of the BitMEX crypto exchange, shares his insights on the price movement of Bitcoin (BTC). According to Hayes, an industry expert, the crypto may have just bottomed out and is expected to slowly rise in the coming days.
Hayes sees the recent market decline as nothing less than expected. Several circumstances, including the US tax season, uncertainty over Fed actions, the Bitcoin halving “sell the news event” and other factors, contributed to the price action that brought a more than 23% correction to the market. For Hayes, however, this was merely a “necessary market cleansing”.
Hayes expects rise for Bitcoin
The former chief of BitMEX believes that a rebound is now in order for the crypto markets after the recent sell-offs. He claims the rise will be driven by increased dollar liquidity from the Federal Reserve’s quantitative tightening (QT) and the US Treasury’s debt issuance plans.
Hayes explains that the Fed’s QT program effectively injects more liquidity into the markets, which could theoretically increase the amount of stimulus for global asset markets. As a result, this liquidity is also expected to find its way into riskier assets, including cryptocurrencies, creating buying pressure.
Interestingly, Hayes is not alone in his views on BTC’s price movement. Dr. Jeff Ross, founder and CEO of Vailshire Capital Management, also believes that analysts might be surprised to discover that, contrary to the popular view that the Bitcoin bull market is over, the actual bull run may not even have started yet. He shared this view in a post on May 2, reinforcing Hayes’ claims.
Bitcoin prices recover slightly
On the day of Hayes’ analysis, Bitcoin prices showed a slight rebound, up 2.9% in the past 24 hours, trading at $55,069. Nevertheless, the asset is still 10% lower than the previous month.
Tags: Predictions Bitcoin price rise market correction
