Bitcoin’s price will hold these levels until August – Arthur Hayes

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  • Arthur Hayes is predicting a slow upward trend for Bitcoin after hitting a local bottom
  • Bitcoin’s value will stabilize between $60,000 and $70,000 until August, he added

As a crypto investor who has weathered through numerous market ups and downs, I find Arthur Hayes’s perspective on the current Bitcoin trend intriguing. His prediction of a local bottom and gradual upward movement in the coming months offers some relief amidst the prevailing bearish sentiment.

Over the past few weeks, I’ve noticed a significant downturn in the crypto-market, specifically with Bitcoin experiencing a substantial decrease in value. Just a few months ago, Bitcoin reached an all-time high of $73,000 in March. However, since then, it has plummeted by approximately 19%, and more recently, dropped by around 7.8%. This steep decline has left me, along with other investors and market analysts, pondering over potential indicators of market stabilization and possible recovery strategies.

Exec weighs In: A turnaround on the horizon?

As a researcher, I’ve come across some intriguing insights from Arthur Hayes, the former CEO of BitMEX. He recently expressed optimism amidst the market’s turbulence in his latest blog post. Specifically, he believes that Bitcoin may have reached its local minimum, and anticipates a steady climb over the next few months.

From this viewpoint, there’s a stark difference to the dominant market opinion, which has primarily reflected pessimism. Factors contributing to this mood are the uncertainty surrounding Federal Reserve policies and a decline in crypto investment enthusiasm as a whole.

Read more$70 million in 24 hours: Can Ethereum crack $4,000 thanks to whales?

Hayes posits that the 12% drop in Bitcoin’s price was essential for market adjustment, attributing it to the US tax season pushing investors to sell their holdings to cover tax obligations. Furthermore, he highlighted the “sell the news” phenomenon following Bitcoin’s latest halving and a slowdown in the expansion of assets tied to spot Bitcoin ETFs.

Market mechanics: Liquidity and future projections

One fascinating aspect of Hayes’s examination is his exploration of the possible consequences of the Federal Reserve’s quantitative tightening (QT) approach. He posits that scaling back QT could result in enhanced liquidity within financial markets, which might positively influence riskier assets such as cryptocurrencies.

He referred to this method as “covert monetary inflation,” implying it could boost asset values and prolong a period of growth.

As an optimistic crypto investor, I believe the market has the ability to adapt to these changes and eventually recover. I envision a future where the market finds its footing and begins a steady climb, softening the extreme price fluctuations we’ve witnessed lately. Regarding my price prediction, according to Hayes, he mentioned…

“The price of Bitcoin could surge above $60,000 before stabilizing in a range between $60,000 and $70,000 until August.”

Read moreBitcoin halving could be a ‘sell-the-news’ event, at least for a few months

Over the past day, Bitcoin has exhibited a potential gradual increase in value on the price charts. Reaching a peak of $59,966, Bitcoin’s trading volume surpassed an impressive $30 billion mark, as indicated by CoinGecko data.

Melker believes otherwise

Although some analysts are optimistic about the future of Bitcoin based on recent positive projections, others, such as Scott Melker, take a more cautious approach. Melker explains that the digital currency has surpassed important support levels, which now function as resistance. Consequently, this could lead to additional price decreases. In fact, Melker predicts that a significant decline to roughly $52,000 is a real possibility.

Melker asserted that the recent downturn represents a moderate decrease of approximately 23%, which aligns with typical corrections experienced throughout this market period. However, he cautioned that more substantial corrections, ranging between 30% and 40%, may still transpire during this market phase.

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2024-05-03 23:03