BitMEX founder Arthur Hayes sees the fall in Bitcoin’s price as a market sweep

Experts are now suggesting that bitcoin may have hit a local bottom and will gradually recover over the coming months.

BitMEX founder Arthur Hayes noted that the leading cryptocurrency could see a surge in value if, as he predicts, liquidity increases in the economy next week due to Janet Yellen’s policies.

Bitcoin may have hit local bottom

In his latest blog post, Hayes said that bitcoin’s latest slide has “continued” as predicted, attributing it to a number of factors including the US tax season, uncertainty in around Fed actions, the halving of the “sell the news” event, and a slowdown. in the growth of assets under management (AUM) of spot ETFs in the US. The founder of BitMEX sees these “united” events as a necessary cleansing for the market.

He even hinted that casual investors, or “tourists,” may choose to stay out of the market for a while, possibly enjoying the margin. On the other hand, the executive believes that serious investors will continue to hold their positions and even accumulate more of their favorite cryptocurrencies like bitcoin, ether and potentially high-risk altcoins like Solana, Dogecoin and others.

To shed more light on recent market activity, Hayes said bitcoin hit a local low of around $56,500 earlier this week and even expects a rally for the asset that could bring the its price above $60,000 once again. Indeed, this has been the case in the last few hours as BTC jumped above $60,000. Following this increase, Hayes predicts there could be a period of limited price action between $60,000 and $70,000 through August.

“I expect prices to come down, cut off and slowly start to rise.”

Sideways for now?

Bitcoin topped $61,800 on Friday after gaining about 5% over the past 24 hours, showing signs of recovery from a midweek slump that pushed its price below $57,000. The recent price surge and recovery suggest that bitcoin is trying to regain its balance after a period of volatility and downward pressure. However, experts believe the asset would trade sideways.

Pseudonym cryptanalyst Kaleo said that BTC’s sideways movement is typical after a halving event, mirroring patterns seen in previous cycles. Kaelo explained that after the halving, it’s common for bitcoin to go through a few months of sideways price action, as miners are now essentially receiving half the income they previously had.

A similar sentiment was echoed by Jeff Ross, founder and CEO of Vailshire Capital Management, as he addressed the pessimism surrounding bitcoin. Despite the “doom and gloom,” Ross maintained his bullish stance by referring to the ongoing market as a “crab.”

The executive also said that predicting the end of the bitcoin bull market may be premature, indicating that the real thing has yet to begin. Ross sees the coming weeks and months as a prime opportunity to accumulate BTC at lower prices as the cryptocurrency trades sideways.

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