Bitcoin
Crypto Expert Arthur Hayes Claims Bitcoin Has Found Its Local Bottom
Arthur Hayesthe co-founder and former CEO of BitMEX, recently shared his thoughts on the current Bitcoin price action. He stated that the flagship crypto has reached a local low and predicted what its future trajectory will be like.
Hayes says Bitcoin has bottomed
In a recent blog post, Hayes mentioned that Bitcoin reached a local low when it fell to around US$58,600 earlier this week. As such, he does not anticipate the flagship cryptocurrency falling below this price range again anytime soon.
Instead, he predicts Bitcoin will rise above $60,000 (which it has already) and “then limited price action between $60,000 and $70,000 by August.”
Hayes also suggested that Bitcoin’s recent decline was due to several factors, including the Fed’s rate decision, the Bitcoin halved news selling event and the slowdown in demand for US Spot Bitcoin ETFs.
He also took the opportunity to address recent policy announcements from the Fed and Treasury, which he believes will significantly impact crypto.
Hayes stated that these announcements meant that the government would likely resort to money printing shortly. He believes the potential injection of liquidity into the US economy will “cushion negative price movement” in the crypto market. As such, he expects prices to “bottom out, decline, and begin to slowly rise.”
Hayes’ Projections Are Similar to Crypto Expert’s Michael van de PoppeWho recently predicted that Bitcoin will likely consolidate for a few months. Interestingly, Van de Poppe also alluded to the Fed’s recent policies, noting that quantitative easing is near, which would be bullish for Bitcoin.
However, Hayes seemed apprehensive about the long-term effects of recent monetary announcements, noting that they were inflationary in nature.
Therefore, although more money is expected to flow into the crypto market with the Fed’s decision, it could cause inflation shoot. This would ultimately lead to higher interest rates, negatively affecting risky assets like Bitcoin.
Bitcoin is now trading at $63.160. Chart: TradingView
Arthur Hayes Trading Strategy Going Forward
MEXC co-founder said he would buy Solana and “dog coins for dynamic trading positions”. For long-term “shitcoin positions,” he mentioned that he would increase his allocations by Pendle while also identifying other tokens that he considers undervalued. Basically, he plans to use this month to increase his exposure.
Having done that, he noted that he would expect the market to “appreciate the inflationary nature of the recent financial crisis.” US monetary policy adverts.”
Meanwhile, as far as canine coins Hayes might be hoarding, Dogwifhat (WIF) is probably one of them, considering he once mentioned that it would load WIF when Bitcoin bottomed.
Featured image from Pexels, chart from TradingView