4 May 2024
Arthur Hayes, the co-founder and former CEO of BitMEX, recently shared his thoughts on the current Bitcoin price action. He stated that the flagship crypto has hit a local low and predicted what its future trajectory will look like.
Hayes Says Bitcoin Has Bottomed
In a recent blog post, Hayes mentioned that Bitcoin hit a local low when it dropped to around $58,600 earlier this week. As such, he doesn’t foresee the flagship crypto dropping below that price range again anytime soon.
Instead, he predicts that Bitcoin will rally above $60,000 (which it already did) and “then range-bound price action between $60,000 and $70,000 until August.”
Hayes also suggested that Bitcoin’s recent decline was due to several factors, including the Fed rate decision, the Bitcoin halving sell-the-news event, and the slowdown in the demand for US Spot Bitcoin ETFs.
He also used the opportunity to touch on the recent Fed and Treasury policy announcements, which he believes will significantly impact crypto.
Hayes claimed those announcements meant the government would likely resort to money printing soon enough. He believes the potential injection of liquidity into the US economy will “dampen negative price movement” in the crypto market. As such, he expects that prices will “bottom, chop, and begin a slow grind higher.”
Hayes’ projections are similar to crypto expert Michaël van de Poppe, who 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 a Quantitative Easing is close, which would be bullish for Bitcoin.
However, Hayes sounded apprehensive of the long-term effects of the recent monetary announcements, noting that they had an inflationary nature.
Therefore, although more money is expected to flow into the crypto market with the Fed’s decision, it could cause inflation to skyrocket. This would eventually lead to higher interest rates, negatively affecting risk assets like Bitcoin.
Arthur Hayes’ Trading Strategy Going Forward
The MEXC co-founder said he would buy Solana and “doggie coins for momentum trading positions.” For long-term “shitcoin positions,” he mentioned that he would increase his allocations in Pendle while identifying other tokens that he considers undervalued. Basically, he plans to use this month to increase his exposure.
Once he had done that, he remarked that he would wait for the market to “appreciate the inflationary nature of the recent US monetary policy announcements.”
Meanwhile, as to what doggie coins Hayes might be accumulating, Dogwifhat (WIF) is likely one of them, considering he once mentioned that he would load up on WIF as Bitcoin bottoms out.
Featured image from Pexels, chart from TradingView