03 May

According to Hayes, the US Treasury's debt issuance plans and the Federal Reserve's quantitative tightening taper will result in more dollar liquidity, which will drive up the price of Bitcoin.

Arthur Hayes, the co-founder and former CEO of the cryptocurrency exchange BitMEX, has offered his opinions on the movement of the price of Bitcoin (BTC). Expert in the field Hayes said in a blog post on Friday that it looks like the cryptocurrency may have bottomed out and will gradually rise again over the coming days.

Hayes asserts that the latest decline in the market was entirely predictable. This is because a number of factors, such as the US tax season, ambiguity around Fed policy, the halving of Bitcoin as a "sell the news event," and others, influenced price action that resulted in a more than 23% market drop. But according to Hayes, what actually occurred was just a "well-needed market cleansing."

According to Arthur Hayes, Bitcoin Will Continue to Rise

After the recent selloffs, the former head of BitMEX thinks a recovery is finally in order for the cryptocurrency markets. According to him, the US Treasury's debt issuance plans and the Federal Reserve's quantitative tightening (QT) taper would boost dollar liquidity, which will propel the increase.

According to Hayes, the QT program of the Federal Reserve effectively increases market liquidity, which may lead to an increase in the stimulus given to the world's asset markets. As a result, there will likely be purchasing pressure when this liquidity moves into riskier assets like cryptocurrency. Here's a sample of the post:

"The Fed is effectively adding $35 billion in monthly dollar liquidity by lowering the rate of QT from $95 billion to $60 billion per month." 

It is anticipated that the Fed's monthly tapering of QT will add billions of dollars in liquidity in response to the various amounts it plans to do so. According to Hayes, this indicates that going forward, the liquidity will eventually offset the negative price movement as cryptocurrency values initially level out before gradually increasing.

Comparable Opinions

It may be important to remember that Hayes is not the only person who has opinions on how the price of bitcoin moves. Dr. Jeff Ross, the founder and CEO of Vailshire Capital Management, thinks experts would be shocked to learn that, despite the general consensus that the Bitcoin bull market is over, the real bull run may still be in its early stages. He also supported Hayes' assertions by sharing the opinion in a May 2 X post.

Remarkably, Bitcoin prices saw a little increase for the day. According to Coinspeaker data as of this writing, Bitcoin has gained 2.9% in the past day and is currently trading at $59,279. Still, the asset has lost 10% from the previous month.

May 2024, Cryptoniteuae

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